- SBI Holdings has invested ¥1 billion of JPYSC’s reserves in short-term Japanese government bonds.
- The move comes as Japan’s bond market faces weaker demand and growing focus on Bank of Japan policy.
Ripple partner SBI Holdings is expanding the role of its yen-backed JPYSC stablecoin by investing part of its reserves in Japanese government bonds.
SBI Shinsei Trust Bank has invested ¥1 billion from JPYSC’s backing assets into short-term Japanese government bonds. The move comes as investors closely watch Bank of Japan policy and demand for government debt weakens.
The investment marks a new step for JPYSC as SBI looks to make greater use of its stablecoin reserves while maintaining liquidity for redemptions.
JPYSC Reserves Enter Japan’s Bond Market
The investment will be handled through SBI Shinsei Trust Bank and SBI VC Trade as part of JPYSC’s reserve management strategy.
JPYSC is SBI Group’s yen-pegged stablecoin and the first trust-based yen stablecoin in Japan to adopt the country’s updated reserve rules.
The revised Payment Services Act came into effect on June 1, 2026. It allows eligible trust-backed stablecoins to hold up to 50% of their reserves in short-term government bonds or time deposits.
SBI is now using this framework to invest ¥1 billion of JPYSC’s reserves in short-term Japanese government bonds.
The stablecoin’s outstanding supply stood at nearly ¥20.1 billion as of September 7. Meanwhile, applications for SBI VC Trade’s yen lending service reached about ¥6.9 billion.
Combined, these figures put demand across the JPYSC ecosystem at nearly ¥27 billion.
BOJ Policy Adds Pressure to Japan’s Bond Market
SBI’s move comes as Japan’s government bond market faces softer investor demand.
A June 22 auction for five-year Japanese government bonds attracted less interest than previous auctions. The bid-to-cover ratio fell to 3.11 from an average of 3.47 over the previous 12 months.
The Bank of Japan’s policy outlook is another factor attracting attention. Expectations of higher interest rates can push government bond yields higher and reduce the value of existing bonds.
The yen has also strengthened against the U.S. dollar, increasing concerns about imported inflation. Japan relies heavily on imports for energy and food, making currency movements important for the economy.
SBI Eyes Wider JPYSC Use Cases
SBI said the bond investment is part of its reserve management strategy. The company wants to maintain liquidity for JPYSC redemptions while holding highly rated yen-denominated assets.
The strategy could also give JPYSC a broader role in Japan’s digital finance market.
SBI expects future use cases to include payments, on-chain foreign exchange transactions and settlements involving tokenized real-world assets.
The move therefore extends JPYSC beyond its role as a yen-pegged stablecoin. It also highlights how regulated stablecoin reserves could become connected to traditional financial markets.
For SBI, the ¥1 billion bond investment represents an early step in building that connection while JPYSC adoption continues to grow.
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