Key Takeaways
- SBI, DigiFT, and Startale completed 2 testnet trials using JPYSC to automate fund settlement and payouts.
- SBI and DigiFT will tokenize a $1.3 billion fund, opening Japanese equities to global institutions.
- The 3 partners will next integrate tokenized assets with DeFi platforms like Morpho and Gauntlet.
Bridging the Gap in Digital Capital Markets
SBI Group, DigiFT, and Startale Group announced a joint initiative demonstrating how JPYSC, a trust-based Japanese yen stablecoin, can support the complete lifecycle of tokenized securities. The successful proof-of-concept (PoC) trials, conducted on an Ethereum testnet environment, showcased instant settlement for tokenized fund subscriptions and automated, on-chain dividend distributions.
The joint initiative aims to solve a persistent bottleneck in the digital asset space. While tokenized real-world assets ( RWAs) have grown rapidly, the actual cash settlements and dividend payouts for these assets typically still rely on traditional, slower banking infrastructure. By integrating JPYSC as a regulated settlement layer, the companies demonstrated how digital capital markets can achieve near-instant settlement finality and continuous, automated operations.
As part of the initiative, SBI Group and DigiFT are working to tokenize the SBI Japan High Dividend Equity Fund. The fund, managed by SBI Asset Management, is one of Japan’s top public equity strategies with approximately $1.3 billion (¥200 billion) in assets under management.
The partners conducted two distinct, structure-agnostic demonstrations to prove the capabilities of JPYSC. The first trial showed how the stablecoin could bypass traditional multi-day settlement cycles, allowing near-instant finality for fund subscriptions to reduce counterparty risk and boost capital efficiency. The second trial utilized smart contracts to automatically calculate and distribute dividends directly to eligible token holders’ wallets once a distribution registry was finalized.
“While the asset management industry has made significant progress in reducing the costs of ETFs and mutual funds, there remains considerable room for improvement in the market infrastructure supporting trading, settlement, and distribution,” said Tomoya Asakura, CEO of SBI Global Asset Management. Asakura added that the technologies could streamline operations, enhance investor experience, and strengthen the global competitiveness of Japan’s capital markets.
The initiative represents one of the first times in Asia that a testnet token representing a regulated Japanese yen stablecoin has been integrated into both primary settlement and secondary income distribution.
“The future of capital markets will be beyond simply tokenizing assets,” said Sota Watanabe, CEO of Startale Group. “This proof of concept demonstrates how regulated stablecoins like JPYSC can power everything from instant settlement to programmable dividend distribution, laying the foundation for a more efficient, transparent, and interoperable financial system.”
DigiFT founder and CEO Henry Zhang emphasized that interoperability is critical to bringing institutional tokenization to scale. “This proof of concept shows how regulated stablecoins like JPYSC can plug directly into the operating model behind manager-led, tokenized funds,” Zhang said.
Looking ahead, the three firms plan to explore integrating tokenized Japanese equities with institutional decentralized finance ( DeFi) platforms. Collaborations with ecosystem partners such as Morpho and Gauntlet are being considered to test advanced use cases, including collateralized lending and programmable, on-chain asset management within regulated frameworks.
