- BlackRock entities signed a memorandum of understanding with SBI Holdings and Startale Group to explore linking tokenized money market funds with SBI’s yen-backed stablecoin, JPYSC.
- The agreement is exploratory and covers technology, business distribution, and regulation. It does not announce a product launch.
- The deal builds on SBI’s June 2026 launch of JPYSC, which is positioned as Japan’s first trust bank-backed yen stablecoin.
BlackRock Financial Management and BlackRock Japan have agreed to study how tokenized money market funds could work alongside SBI Holdings’ Japanese yen stablecoin. The companies signed a memorandum of understanding with SBI Holdings and Startale Group, a partnership that was made public in October 2026. The arrangement is a framework for exploration rather than a finished service.
What Happened
The memorandum covers BlackRock Financial Management, BlackRock Japan, SBI Holdings, and Startale Group. Its stated goal is to examine whether tokenized money market funds, often called MMFs, could be connected with JPYSC, the yen-pegged stablecoin issued under SBI’s umbrella.
The parties plan to look at three workstreams. The first is technology and infrastructure, which would determine how fund shares and stablecoin payments could interact on blockchain networks. The second is business and distribution, which would consider how such products might reach investors. The third is regulation and market development, which would address the legal and market conditions needed before any offering could proceed.
Yukiko Hashimoto, president of BlackRock Japan, described digital asset innovation, including tokenization, as a source of new possibilities for financial markets. The company said it believes these developments can help advance markets and provide new value to investors in Japan. Jonathan Steel, managing director at BlackRock Financial Management, said the collaboration with SBI reflects a shared aim of linking traditional finance with digital asset ecosystems. The parties also said they would look for additional partners to advance on-chain finance in Japan and overseas.
Why It Matters
For investors, the most notable element is the involvement of a large asset manager in the tokenized fund segment. Money market funds are typically used as low-volatility vehicles for holding cash-like assets. If they can be represented on a blockchain and paired with a regulated stablecoin, that could change how settlement and collateral movements occur. The memorandum does not establish any such product, and its outcome depends on the findings of the three workstreams.
For the crypto market, the agreement signals that established financial firms are willing to work with stablecoin issuers that operate under national regulatory frameworks. JPYSC is designed around yen-denominated assets rather than U.S. dollars, which gives the arrangement a specific regional focus. Observers may view the deal as an example of how tokenization is moving from pilot projects toward structured partnerships between traditional asset managers and digital asset firms.
Market Context
The push to tokenize real-world assets, including money market funds, has gained momentum internationally as regulators continue to develop frameworks for these products. Efforts to combine tokenized assets with stablecoins are also underway, with the goal of creating financial infrastructure that can handle both fund shares and payment instruments.
SBI’s involvement has been growing. Startale and SBI launched JPYSC in June 2026 as Japan’s first yen stablecoin backed by a trust bank. SBI Shinsei Trust Bank manages issuance, while the licensed crypto exchange SBI VC Trade handles distribution. Ripple has also tapped SBI Group to launch its RLUSD stablecoin in Japan through SBI VC Trade. SBI and Startale have additionally joined the Open Standard alliance to explore interoperability between JPYSC and OUSD stablecoins.
In a statement, Yoshitaka Kitao, chairman and president of SBI Holdings, 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.” SBI Holdings and Startale have said the BlackRock memorandum is intended to support on-chain finance development in Japan and globally.
Integrating traditional fund products with blockchain systems also raises questions about custody. Reserves backing tokenized funds and stablecoins must be safeguarded, which is why institutional custody solutions for tokenized assets are an important part of this type of infrastructure.
What to Watch Next
- Outputs from the three workstreams: Any published findings on technology, distribution, or regulation would show whether the parties intend to move toward a product.
- Regulatory developments in Japan: Rules governing stablecoins, tokenized funds, and custody will shape what is possible for the partners.
- Additional partners: The companies said they would seek further participants, so new names joining the effort could indicate its scope.
- JPYSC adoption: Growth in issuance and distribution through SBI VC Trade will be a relevant indicator of demand for yen-backed stablecoins.
- Interoperability progress: Work through the Open Standard alliance on linking JPYSC with OUSD stablecoins may reveal how cross-network connections develop.
Source: original report
