BlackRock joins SBI, Startale to link tokenized funds with yen stablecoin - Crypto News
BlackRock has signed an agreement with SBI Holdings and Startale Group to explore connecting tokenized money market funds with JPYSC, a yen-denominated stablecoin, as the companies examine infrastructure for blockchain-based financial services in Japan.
According to an October 27 announcement from SBI Holdings and Startale, BlackRock Financial Management and BlackRock Japan signed a memorandum of understanding to examine the proposed connection. The agreement covers technical development, business opportunities and regulatory requirements, but the companies have not announced a commercial launch.
The proposed arrangement would bring tokenized investment products and a yen-based payment instrument into the same financial infrastructure. The announcement does not identify a specific BlackRock fund for integration, a blockchain network or a timetable for completing the work.
Tokenized funds and JPYSC connection
Under the agreement, the companies will examine how tokenized money market funds could connect with JPYSC through blockchain infrastructure. Their work will cover the systems needed to support transactions, possible distribution channels and the rules governing access to the proposed services.
At BlackRock, we believe these innovations can help advance financial markets and deliver new value to investors in Japan.
SBI Holdings brings banking, securities and digital asset operations to the discussions, while Startale contributes blockchain development capabilities. BlackRock's participation includes its U.S. financial management business and Japanese subsidiary, giving the project access to the asset manager's experience with investment funds.
Existing stablecoin projects
SBI and Startale have already worked together on financial infrastructure designed to support tokenized securities. In February, the companies introduced the Strium blockchain, a network intended for trading tokenized equities, foreign exchange products and other financial assets.
Their stablecoin work has continued through JPYSC, which uses a trust-bank issuance structure. SBI Shinsei Trust Bank handles issuance, while SBI VC Trade provides distribution services through the group's regulated digital asset operations.
The shift to onchain finance is becoming an unavoidable global trend.
Japan's regulatory framework
Japan has established a legal framework for stablecoins through amendments to its Payment Services Act, which created rules for qualifying fiat-linked digital payment instruments. The companies identified regulation as one of three areas requiring further examination before a connection between JPYSC and tokenized funds could operate commercially.
Their regulatory work will include assessing the requirements for distributing tokenized investment products and using stablecoins alongside them. The announcement does not state that regulators have approved a combined service or that customers can already use JPYSC to purchase tokenized money market fund shares.
BlackRock's tokenized finance expansion
BlackRock has already developed tokenized money market fund infrastructure through its BUIDL product, which has expanded across several blockchain networks. Its existing work includes arrangements allowing eligible institutional cryptocurrency traders to use tokenized fund holdings as collateral.
The asset manager has examined further collateral applications in conventional financial markets, where custody arrangements and eligibility requirements determine whether such assets can support transactions. The newly announced Japanese collaboration does not specify whether BUIDL or another BlackRock-managed fund would participate.
The companies intend to involve additional financial institutions and businesses as discussions progress. Their October 27 agreement leaves the technical design, participating funds and eventual operating arrangements subject to further assessment.
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