BlackRock and SBI Sign Memorandum to Explore Collaboration on Yen Stablecoin and Tokenized Funds

Cooperation Framework for Collaboration Between Tokenized Financial Products and JPYSC

U.S. asset management giant BlackRock has signed a memorandum with SBI Holdings and Staterre Group.

The collaboration will jointly explore the technical aspects, business opportunities, and regulatory requirements regarding the integration of tokenized money market funds and the yen-denominated stablecoin JPYSC. The memorandum includes participation from BlackRock Financial Management, BlackRock Japan, SBI Holdings, and Staterre Group. The companies will focus on three areas: technology and infrastructure, business and distribution, and regulation and market development to connect the tokenized money market funds with JPYSC.

BlackRock brings expertise in asset management for institutional investors, while SBI leverages its knowledge in financial services and regulatory compliance through banking, securities, and digital asset businesses. Staterre will utilize its blockchain development capabilities to explore the potential of linking traditional financial products with on-chain finance.

Sachiko Hashimoto, President of BlackRock Japan, expressed that advancements in digital assets, including tokenization, open up new possibilities in the financial markets and bring new value to Japanese investors. Additionally, Yoshitaka Kitao, Chairman and President of SBI Holdings, positioned the shift to on-chain finance as an unavoidable global trend, emphasizing the importance of building a foundation for the next-generation financial market as soon as possible.

This agreement is in a preliminary phase to investigate feasibility, and specific details regarding the funds involved, the blockchain to be used, and the timeline for commercial deployment have not been announced.

Building a Foundation for On-Chain Finance Utilizing Yen-Denominated JPYSC

JPYSC is a yen-pegged stablecoin co-developed by SBI Holdings and Staterre, adopting a trust bank-based issuance model. SBI Shinsei Trust Bank is responsible for the issuance, while the cryptocurrency exchange SBI VC Trade handles the sales. Staterre provides the foundational infrastructure for the blockchain.

A money market fund primarily invests in short-term financial products such as government bonds, and the mechanism of tokenization expresses its shares on the blockchain. By integrating this with JPYSC, it may allow institutional investors to move funds between the fund and the settlement stablecoin without leaving the on-chain environment.

While BlackRock is already operating the tokenized fund BUIDL, this memorandum does not confirm the integration of BUIDL with JPYSC.

On the other hand, SBI and Staterre are also separately exploring the interoperability between JPYSC and the U.S. dollar-denominated stablecoin Open USD. The collaboration with BlackRock is an independent initiative, and the companies are looking for new cooperation opportunities with financial institutions and technology providers to promote the development of on-chain finance both domestically and internationally.