The proof of concept demonstrates end-to-end JPYSC-powered settlement and automated onchain dividend distribution for tokenised securities in a testnet environment, illustrating the potential of programmable capital markets. For these technical demonstrations, the parties used a dedicated testnet token created solely for technical verification. This testnet token is separate from and not the regulated JPYSC issued in Japan. The PoC was designed to validate workflows and infrastructure intended for future integration with JPYSC.
SBI Group, DigiFT, and Startale Group today announced the first proof-of-concept (PoC) initiatives demonstrating how JPYSC, Japan's first trust-based Japanese yen stablecoin, can power the full lifecycle of tokenized securities. Conducted in an Ethereum testnet environment, the joint PoC showcase:
- Instant settlement of tokenized Japanese equity fund subscriptions using JPYSC
- Automated, onchain distribution of fund-level income in JPYSC
Bringing Capital Markets Fully Onchain
While tokenized securities have gained significant momentum globally, cash settlement and dividend payments remain largely dependent on traditional financial infrastructure. Together, these PoCs demonstrate how regulated stablecoins and tokenized real-world assets (RWAs) can modernize securities issuance, settlement, and income distribution while preserving compliance and investor protections.
The joint initiative demonstrates how JPYSC can serve as the settlement layer for tokenized investment products, enabling near-instant finality, programmable cash flows, and continuous onchain operations. As part of this broader collaboration, SBI Group and DigiFT are working toward tokenizing the SBI Japan High Dividend Equity Fund, one of Japan's leading public equity funds exceeding ¥200 billion in assets under management, thereby creating new regulated onchain access to Japanese equities for global institutional investors.
These PoC initiatives are structure-agnostic demonstrations of JPYSC’s settlement and distribution capabilities.
The JPYSC settlement and dividend PoC announced today establishes key building blocks required to support the fund’s full onchain lifecycle. The dividend distribution PoC is a separate, structure-agnostic demonstration of JPYSC's capabilities for tokenized products that make distributions, and does not apply to the fund referenced above. With SBI Asset Management Co., Ltd. (“SBI AM”) as the investment manager of the underlying fund strategy, DigiFT as the regulated tokenization platform, and Startale Group providing blockchain infrastructure and JPYSC expertise, the parties will conduct the following proof-of-concept initiatives:
- JPYSC-Powered Instant Settlement for Tokenized Securities
The first proof of concept demonstrates how the intended JPYSC settlement model can enable near-instant settlement for tokenized Japanese equity fund subscriptions. By replacing traditional multi-day settlement processes with onchain settlement, the PoC showcases the potential to reduce settlement risk, improve capital efficiency, enable 24/7 transactions, and support programmable payment flows for digital capital markets.
- Automated Onchain Dividend Distribution
The second proof of concept demonstrates how the testnet tokens representing the intended functionality of JPYSC can fully digitize dividend distribution for tokenized investment products that make distributions to holders. Once a distribution amount and holder registry are finalized, the PoC demonstrates how dividends can be calculated and distributed directly to eligible token holders via smart contracts. In a production implementation, investors could immediately hold, reinvest, transfer, or convert their JPYSC, enabling a faster, more transparent, and programmable dividend lifecycle.
Building the Next Generation of Capital Markets
The collaboration is among the first demonstrations in Asia using a testnet token representing the intended functionality of a Japanese yen stablecoin regulated in Japan, being integrated across both primary settlement and post-trade income distribution for tokenized securities. It also establishes key infrastructure supporting the tri-parties’ broader vision of building a Japan-originated onchain capital market that connects tokenized Japanese financial assets with regulated digital cash.
"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. This proof of concept explores the potential to transform the entire asset management lifecycle by combining tokenized assets with a yen-denominated stablecoin, enabling greater efficiency and transparency. We believe these technologies have the potential not only to streamline operations but also to enhance the investor experience and strengthen the international competitiveness of Japan's capital markets. As an asset management company within the SBI Group, we are committed to advancing the practical implementation of next-generation financial infrastructure and bringing Japanese innovation to the global stage," said Tomoya Asakura, CEO, SBI Global Asset Management
"The future of capital markets will be beyond simply tokenizing assets. It will bring the entire transaction lifecycle onchain. 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," said Sota Watanabe, CEO of Startale Group.
"Regulated tokenization only becomes real infrastructure when the settlement layer underneath it is interoperable. This proof of concept shows how regulated stablecoins like JPYSC can plug directly into the operating model behind manager-led, tokenized funds, turning what is often a static onchain representation into something that can actually move, settle, and distribute value where it applies. It reinforces why we built DigiFT's infrastructure to support that full lifecycle, not just the token issuance step, and it is a model we expect to extend across our broader roster of tokenized funds," said Henry Zhang, Founder and Group CEO, DigiFT, emphasizing why interoperable settlement infrastructure is core to making manager-led, regulated tokenization work at institutional scale.
Looking beyond these PoCs, the parties also intend to explore integrating tokenized Japanese equity assets with institutional-grade DeFi infrastructure through collaborations with ecosystem partners such as Morpho and Gauntlet, enabling future use cases including lending, collateralization, and programmable onchain asset management within regulated frameworks.
Together, the collaboration demonstrates a practical blueprint for next-generation capital markets, where tokenized assets and regulated digital cash work seamlessly to deliver faster execution, streamlined operations and new opportunities for financial innovation. The three organizations intend to accelerate the commercialization of tokenized capital markets by advancing production deployments of regulated investment products powered by JPYSC, unlocking new use cases for onchain finance at an institutional scale.
About DigiFT
DigiFT is a next-generation platform for tokenized real-world assets (RWAs), regulated by the Monetary Authority of Singapore (MAS) and the Hong Kong Securities and Futures Commission (SFC) for Type 1 and Type 4 regulated activities. The platform offers end-to-end digital asset services—including tokenization, issuance, distribution, trading, and instant liquidity provision—purpose-built for institutional RWAs. Trusted by global financial institutions, DigiFT is the on-chain tokenization and distribution partner for leading asset managers such as BNY, CMB International, DBS Bank, Franklin Templeton, Hines, Invesco, UBS Asset Management, and Wellington Management. Learn more at www.digift.io
About Startale Group
Startale Group is a leading global crypto solutions provider on a mission to build the next civilization by bringing the world onchain. The company co-develops Soneium with Sony Group Corporation and is developing Strium through SBI Holdings, a platform enabling 24/7 trading of tokenized securities. Startale powers onchain finance through its native stablecoins JPYSC and USDSC, and offers the Startale App, a SuperApp that unifies asset management, engagement and exploring blockchain applications into a single seamless experience.