Japan’s SBI Group, DigiFT, and Startale Group have completed two proof-of-concept (PoC) tests showing how JPYSC, Japan’s first trust-based Japanese yen stablecoin, could support the settlement and income distribution of tokenized securities.
The tests were conducted on the Ethereum testnet and focused on two parts of the investment lifecycle, which are instant settlement for tokenized securities and automated onchain distribution of fund income.
The initiative comes as the three firms work toward tokenizing the SBI Japan High Dividend Equity Fund, a public equity fund with more than ¥200 billion in assets under management. The project aims to give institutional investors regulated onchain access to Japanese equities.
トークン化株式の実装に向けてJPYSCでのトークン株式決済と分配を技術検証します。
SBI、DigiFT、Startale Group、 円建てステーブルコインJPYSCの活用を見据えた、トークン化日本株ファンドの 決済・分配に関するテストネットPoC (技術検証) を開始https://t.co/YlzqSkGw4W
— 渡辺創太 @スターテイル (@SotaOnchain) July 15, 2026
Two tests target settlement and dividend payments
The first PoC demonstrated how JPYSC could replace traditional settlement processes for tokenized fund subscriptions. According to the companies, the model could shorten settlement times, reduce counterparty risk, improve capital efficiency, and allow transactions to operate around the clock.
The second PoC focused on dividend payments. Once investor records and distribution amounts are finalized, smart contracts automatically calculate and distribute payments in JPYSC to eligible token holders.
Although both demonstrations used testnet assets, the companies said the results establish the infrastructure needed to support regulated tokenized investment products powered by a Japanese yen stablecoin. They also plan to examine future integrations with decentralized finance protocols, including Morpho and Gauntlet, for services such as collateralization and institutional lending.
Can tokenized funds solve the settlement problem?
Tokenization has attracted interest from asset managers over the past two years, but many projects still rely on conventional banking rails to settle trades and distribute investment income. That leaves part of the investment process outside blockchain networks.
Franklin Templeton, BlackRock, and UBS have already launched tokenized fund initiatives, yet settlement and cash movements often continue through existing financial infrastructure. The SBI, DigiFT, and Startale tests focus on that remaining gap.
If regulated stablecoins can handle subscriptions, settlements, and distributions within the same system, tokenized funds begin to function as complete onchain financial products rather than digital versions of traditional securities. That could reduce operational delays while making tokenized investment products more practical for institutional investors.
Meanwhile, SBI Group is preparing to launch a lending service that will allow users to earn returns on their JPYSC holdings, making it the country’s first yield product built around a yen-denominated stablecoin.
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