Japan’s SBI Shinsei Pioneers Digital Yen in Global Blockchain Push

SBI Shinsei Bank has joined a blockchain-based cross-border payment trial with JPMorgan’s Partior network and DeCurret, aiming to introduce digital yen (DCJPY) for international transactions by fiscal 2026. The initiative is expected to significantly reduce transfer costs and settlement times compared to traditional systems like SWIFT. According to reports, DCJPY will allow for near-instant international transfers, which could prove especially beneficial for corporate clients involved in global trade. This move positions SBI Shinsei as the first Japanese bank to integrate into the Partior network, a platform already used by international institutions such as DBS and Standard Chartered.

The tokenized JPY deposits are regulated and fixed at a one-to-one value with physical yen, distinguishing them from stablecoins that may experience minor fluctuations. The Financial Services Agency has specified under the revised Payment Services Act that only licensed banks may issue deposit tokens on permissioned blockchains, ensuring regulatory oversight and stability. SBI Shinsei’s venture aligns with Japan’s broader strategy to modernize its financial infrastructure and increase its presence in global blockchain-based payment systems. The initiative also reflects a trend among major financial institutions to adopt blockchain technology for cross-border settlements, a shift that could enhance efficiency and reduce reliance on traditional correspondent banking systems.

Japan Post Bank, the country’s largest bank, has also announced plans to adopt DCJPY for securities settlement in 2026, potentially expanding the digital yen ecosystem significantly. With over 120 million accounts and $1.3 trillion in deposits, its participation could accelerate the adoption of tokenized deposits and enhance the liquidity of the digital yen. This development is supported by the Bank of Japan’s Digital Money Forum, which has highlighted the potential for deposit tokens like DCJPY to complement stablecoins and central bank digital currencies.

Beyond cross-border payments, SBI Holdings is actively expanding its tokenization strategy. The company is collaborating with Singapore startup StarTail on a blockchain-based stock tokenization platform, expected to launch by 2026 or 2027. This system is set to support tokenized bonds and ETFs, aiming to reduce fees and improve access to Japanese financial markets globally. Additionally, SBI’s exchange arm, SBI VC Trade, has partnered with Ripple to distribute the RLUSD stablecoin in Japan from 2026, backed by dollar deposits and government bonds.

The global cross-border payment landscape is undergoing rapid transformation, driven by the inefficiencies of traditional systems like SWIFT. The Financial Stability Board noted that sending $200 internationally carried an average global fee of 6.4 percent in the previous year. Blockchain-based solutions such as Partior aim to address these issues by enabling real-time transactions at a fraction of the cost. SBI Shinsei’s involvement in this network underscores Japan’s strategic push to remain competitive in a rapidly evolving financial ecosystem, leveraging precise regulation and technological innovation.

Experts suggest that the success of this initiative could lead to broader adoption of tokenized deposits and contribute to long-term stability in financial markets. The integration of Japan’s banking system into global blockchain networks marks a significant step in the country’s financial evolution, reflecting global trends toward tokenized finance and digital asset integration. As the trial progresses, further developments are expected to shape the future of cross-border transactions and financial infrastructure.