BlackRock joins SBI and Startale to link tokenized MMFs with Japanese yen stablecoins
SBI Holdings and Startale Group have signed a memorandum of understanding with BlackRock Financial Management and BlackRock Japan to explore connecting tokenized money market funds (MMFs) with SBI's Japanese yen-denominated stablecoin, JPYSC.The companies said they will examine the potential for connecting tokenized MMFs and JPYSC across three areas: technology and infrastructure, business and distribution, and regulation and market development.They plan to explore the technical requirements and infrastructure needed to support the integration, and examine potential business models and distribution opportunities by leveraging their respective networks and market access. The companies will also consider relevant regulatory developments in assessing the market environment for tokenized assets and stablecoins.Furthermore, the collaboration is designed to be open to various financial institutions and businesses in Japan and internationally, the companies said."The shift to onchain finance is becoming an unavoidable global trend. If Japan is to lead this transformation rather than fall behind, we must prepare early and build the foundations for the next generation of financial markets," said Yoshitaka Kitao, representative director, chairman and president of SBI Holdings.In 2022, Japan established its legal framework for stablecoins through amendments to the Payment Services Act. This came into force a year later, defining fiat-backed stablecoins as Electronic Payment Instruments and limiting their issuance to licensed banks, trust companies, and registered money transfer services."The next step is to develop the infrastructure, distribution channels, and regulatory frameworks needed to connect tokenized assets with stablecoins and support broader market adoption," the companies said.BlackRock launched its tokenized fund BUIDL in 2024, which has grown to one of the largest of its kind with around $2.17 billion in U.S. Treasurys, overnight repos, and cash under management.Meanwhile, SBI launched JPYSC with Startale in June this year as Japan's first trust bank-backed yen stablecoin. SBI Shinsei Trust Bank manages the issuance, while SBI VC Trade — a licensed crypto exchange — is responsible for its distribution.