Written by: Deng Tong, Jinse Finance
Japan's financial giant SBI has been very active in the cryptocurrency field recently. In August, Ripple, in collaboration with CB Insights and the UK Blockchain Technology Centre, released the latest report, stating that Citigroup, JPMorgan, Goldman Sachs, and Japan's SBI Group have become the most active participants in the traditional financial sector supporting blockchain startups. Recently, SBI has reached collaborations with Chainlink, Ripple, Startale, and others to assist in the global application of digital assets.
What layouts does SBI have in the cryptocurrency field? Why did SBI transform from traditional finance to traditional finance + cryptocurrency finance? What is the current state of Japan's cryptocurrency sector?
I. SBI's Cryptocurrency Layout
1. Entering the Stablecoin Boom
On August 21, 2025, Ripple announced its collaboration with Japan's SBI Group. Ripple's announcement mentioned a new memorandum of understanding reached with Ripple Labs regarding the distribution of RLUSD in Japan, with SBI VC Trade (which completed registration in March to support USDC operations) aiming to launch the stablecoin within the fiscal year ending March 2026. SBI stated, "The purpose of establishing this joint venture is to promote the use of USDC in Japan and create new use cases in the Web3 and digital finance space." SBI VC Trade CEO Tomohiko Kondo stated, "The launch of RLUSD not only expands the range of stablecoin options in the Japanese market but also represents an important step forward in the reliability and convenience of stablecoins in Japan."
2. Building a Trading Platform
On August 21, 2025, SBI Holdings announced a strategic partnership with cryptocurrency infrastructure company Startale Group to jointly launch an on-chain tokenized stock trading platform. The platform will combine SBI's financial ecosystem with Startale's blockchain infrastructure, supporting 24-hour continuous trading of tokenized stocks and providing faster cross-border settlement and fractional ownership features. Additional features include advanced account abstraction, institutional custody, and real-time compliance monitoring with international regulations. Startale Group founder Sota Watanabe stated, "We believe that the tokenized stock revolution is the greatest opportunity, and on-chain trading is the next frontier. While traditional markets are closed 70% of the time, our platform will support continuous, programmable trading of tokenized stocks, including domestic stocks from the U.S. and Japan."
On July 17, 2018, SBI Holdings officially launched its cryptocurrency exchange SBI VC Trade. On July 31, 2019, SBI VC Trade launched virtual currency spot trading service VCTrade Pro. On March 4, 2025, SBI VC Trade announced that it had completed the first registration for trading Japanese stablecoins. After gaining approval, it began processing USDC transactions on March 12. The company will be able to provide buying, selling, and deposit services for USDC to individual and corporate clients and will need to secure collateral in dollars equivalent to customer deposits of USDC, with SBI Group's new trust bank taking on the role of trust collateral.
3. Acquisition of Web3 Media
On August 22, 2025, SBI Holdings announced that it had signed a share transfer agreement with some existing shareholders of CoinPost, which operates Web3-related media and event businesses. Through this transaction, SBI Holdings will acquire a majority stake in CoinPost, making it a consolidated subsidiary of SBI Holdings. The merger is expected to be completed by October 1, 2025, but all necessary share transfer procedures must be completed.
SBI Holdings Chairman and CEO Yoshitaka Kitao stated: "With CoinPost joining the SBI Group, we will further strengthen the reliable information infrastructure that CoinPost has built in the cryptocurrency and Web3 fields. While ensuring media fairness and neutrality, we will work hand in hand with companies under the group to accelerate the social implementation of Web3, contribute to the construction of a new financial and digital industry foundation, and promote the development of Japan's cryptocurrency industry."
4. Creating Cryptocurrency Tools
On August 25, 2025, SBI Group collaborated with the blockchain oracle platform Chainlink. SBI and Chainlink will explore tools that allow cross-blockchain tagging of real-world assets, such as on-chain bonds, and use Chainlink's technology to provide on-chain verification for stablecoin reserves.
SBI stated: The collaboration with Chainlink will enable the company to use its blockchain interoperability protocol for a range of use cases, including tagging RWA and facilitating foreign exchange and cross-border transactions. Chainlink co-founder Sergey Nazarov stated, "I am pleased to see our outstanding work moving towards large-scale production use."
On March 29, 2024, SBI Holdings, SBI Real Estate Finance, and Sumitomo Real Estate Sales collaborated to develop a blockchain-based real estate transaction documentation and data sharing solution called SREC. SREC can be used to share documents and data regarding the progress of sales transactions, making it more transparent.
5. Apply for ETF
On July 31, 2025, SBI proposed to launch two new exchange-traded funds covering XRP, BTC, and gold. SBI's cryptocurrency asset ETF will offer direct investment in XRP and BTC. If approved, it will become a key catalyst for promoting institutional adoption of XRP in Japan. By combining the growth potential of cryptocurrencies with the stability of gold, SBI provides a novel risk-adjusted investment tool. This strategy caters to a broader range of investors and positions SBI as a pioneer at the intersection of traditional finance and blockchain innovation. Market analysts believe that SBI's initiatives may prompt other financial institutions to launch similar products.
6. Expanding Global Markets
On November 5, 2024, SBI Digital Markets strengthened its role in the Monetary Authority of Singapore (MAS) Project Guardian by launching a new pilot project aimed at promoting the application of tokenized securities in global markets. This Japanese subsidiary of SBI Group is collaborating with financial institutions to develop a cross-border framework for tokenized assets, connecting regulated digital asset exchanges across multiple regions to enhance liquidity and reduce costs. The company announced on Monday that through its fixed-income pilot project, SBIDM is creating an international network for securities backed by tokenized assets, covering initial issuance and secondary trading.
7. Entering the Blockchain Gaming Sector
On August 29, 2024, the blockchain gaming platform Oasys announced a strategic partnership with Japan's financial group SBI Holdings and received funding support. The collaboration with SBI Holdings will help Oasys reach new heights, enhance the liquidity of the OAS token, and strengthen ecosystem development. Previously, Oasys had conducted several collaborations with the SBI Group, including the launch of the OAS token on SBI VC Trade in May 2023 and integration with the SBINFT Market.
Yoshitaka Kitao, Representative Director, Chairman, President, and CEO of SBI Holdings Co., Ltd. stated: "Oasys is a promising blockchain project in Japan designed specifically for gaming applications. Since its establishment, it has attracted several globally renowned large game development companies as initial validators. Our group has actively invested in the blockchain and cryptocurrency fields from early on, starting with investments in Ripple in 2016 and R3 in 2017, and has built an ecosystem capable of providing a wide range of products and services. Through collaboration with Oasys, we are committed to further expanding the use cases of blockchain technology."
II. Why Did SBI Transition from Traditional Finance to Traditional + Cryptocurrency Finance?
1. Japan's Regulatory Policy Gradually Clarifies
In 2016, Japan amended the Payment Services Act: for the first time, virtual currencies were brought under regulatory oversight, establishing a mandatory registration system for exchanges and requiring trading platforms to implement customer asset segregation, annual external audits, and anti-money laundering (AML) measures. This amendment laid the legal foundation for subsequent regulation, making Japan the first country in the world to issue licenses to cryptocurrency exchanges. The revised Fund Settlement Act in 2017 for the first time categorized virtual currencies as legitimate payment instruments and established a licensing system for exchanges. This policy breakthrough directly led to SBI's establishment of its cryptocurrency exchange, SBI VC Trade, and obtaining a license in the same year.
In 2020, the revised Financial Instruments and Exchange Act clarified the legal status of security tokens (STO), allowing them to be issued and traded using blockchain technology. SBI Group became the first financial institution approved to conduct STO operations.
On June 24, 2025, the Financial Services Agency of Japan released a document announcing that it would seriously consider transferring cryptocurrency asset regulation from the Payment Services Act to the Financial Instruments and Exchange Act framework.
In summary, Japan's cryptocurrency regulatory framework is at a globally leading level, and the increasingly完善的监管体系助力 SBI 向加密金融转型.
2. The Reconstruction of Financial Infrastructure by Blockchain is Inevitable
The trend of blockchain technology reconstructing financial infrastructure is the core driving force behind SBI's transformation. Through its joint venture SBI Ripple Asia, SBI has used XRP as a bridge currency for cross-border settlements, reducing remittance costs from Japan to the Philippines by 30%, and shortening settlement times from 3 days to 3 seconds. SBI is collaborating with Singapore's Startale to develop a blockchain stock digitization platform, aiming to convert Japanese stocks into ERC-20 standard tokens by the end of 2026. Tokenized stocks can achieve T+0 real-time settlement, reduce transaction costs by 70%, and support fractional ownership (such as 0.0001 shares).
Blockchain has achieved a leap in financial efficiency through technological reconstruction. As a traditional financial giant, SBI has embraced blockchain technology in the wave of financial infrastructure reconstruction alongside traditional financial giants like BlackRock, becoming a leader in the transformation of traditional financial enterprises in the cryptocurrency sector.
3. Seizing the Voice in the Cryptocurrency Industry
As of August 2025, the number of cryptocurrency trading accounts in Japan exceeded 12 million, accounting for 9.5% of the total population, representing a 50% increase compared to 2024. Securing a significant voice in the increasingly vast cryptocurrency industry is of great significance for SBI. In recent years, SBI Group has been deeply involved in the formulation and implementation of Japan's cryptocurrency and digital asset regulatory policies, demonstrating its influence.
The Japan STO Association, established by SBI, received formal certification from the Financial Services Agency (FSA) in 2020, becoming the only self-regulatory organization in the field of stablecoins and security tokens; SBI completed Japan's first security token issuance (STO) in 2020, tokenizing the stocks of its subsidiary SBI e-Sports, which directly prompted the FSA to amend the Financial Instruments and Exchange Act in 2021; as the leader of Japan's digital securities issuance association, SBI promoted the establishment of the world's first self-regulatory framework (SRO) for digital securities, with the relevant technical solutions incorporated into the 2023 Digital Securities Infrastructure Act; in 2024, SBI led the development of a cross-border tokenized securities distribution framework in Singapore’s Monetary Authority (MAS) Project Guardian, facilitating regulatory mutual recognition among exchanges in Japan, Singapore, and Switzerland, with related agreements incorporated into the FSA's guidelines for cross-border digital asset trading.
III. What is the Current State of Japan's Cryptocurrency Industry?
Japan has long been recognized as a pioneer in the application and regulation of cryptocurrencies. Here are the significant milestones in Japan's cryptocurrency regulation:
May 2016: In response to the Mt. Gox incident, the Financial Services Agency of Japan established a regulatory system for cryptocurrency service providers under the Payment Services Act (PSA).
April 2017: The revised Cryptocurrency Act from 2016 came into effect, defining cryptocurrencies under Japanese law. Exchanges must register with the Financial Services Agency of Japan and comply with anti-money laundering/know your customer (AML/KYC) standards, as well as implement strict cybersecurity measures.
September 2017: The Financial Services Agency of Japan approved 11 exchanges, officially marking the beginning of the regulated cryptocurrency trading era in Japan.
January 2018: The cryptocurrency exchange Coincheck was hacked, resulting in a loss of approximately $530 million in NEM tokens at the time, leading to stricter regulations.
April 2018: With tightening regulations, cryptocurrency exchanges jointly established the Japan Virtual Currency Exchange Association (JVCEA).
October 2018: The Financial Services Agency of Japan granted JVCEA self-regulatory status.
May 2020: The revised Public Service Act (PSA) and Financial Instruments and Exchange Act (FIEA) came into effect, further clarifying cryptocurrency regulation. Under the FIEA, cryptocurrency custody services were introduced, separating custody business from exchanges and enhancing investor protection.
In June 2022, the Japanese Parliament enacted new regulations allowing licensed financial institutions to issue legally backed stablecoins, requiring issuers to fully back stablecoins with domestically held yen reserves.
In April 2023, the Liberal Democratic Party of Japan released a white paper outlining the strategy for Web3 and blockchain adoption, recommending adjustments to tax policies and the approval framework for exchange-traded funds (ETFs).
On June 24, 2025, the Financial Services Agency of Japan (FSA) proposed to reclassify cryptocurrency assets as traditional financial products and implement a new tax system for them. The new system is expected to come into effect in 2026.
On August 18, 2025, Japanese stablecoin issuer JPYC obtained a license as a "money transfer service provider" in Japan, marking the first time Japan has issued such a license to a digital currency issuer.
As mentioned above, the two main themes of Japan's cryptocurrency industry this year are cryptocurrency taxation and yen-backed stablecoins.
On August 25, a member of the Japanese Senate, Satsuki Katayama, pointed out that Japan is promoting the adjustment of cryptocurrency classification, planning to shift it from "miscellaneous income" to the regulatory scope of the Financial Instruments and Exchange Act to reduce the maximum tax rate from 55% to 20% (in line with the United States). Currently, discussions are ongoing with multiple parties, aiming to finalize the plan by the end of the year. If the adjustment of cryptocurrency tax rates is implemented, the application of stablecoins in daily transactions may further popularize.
Historically, Japan has been one of the countries with the strictest tax systems for cryptocurrency investors. Under the current tax system in Japan, all profits from cryptocurrency transactions are classified as "miscellaneous income." This means that unlike profits from stocks or real estate, profits from cryptocurrency trading, consumption, or earning must pay progressive income tax. These tax rates generally range from 5% for low-income earners to 45% for high-income earners. If a 10% local resident tax is included, the effective tax rate can reach as high as 55%, making it one of the highest cryptocurrency taxes in the world. However, with the passage of new tax regulations, Japanese financial regulators are expected to create one of the most investor-friendly tax structures globally.
The following is a comparison of the existing tax system for cryptocurrency assets and the proposed tax system:
(Nikkei News) Previous reports indicated that JPYC is expected to launch a regulated yen stablecoin before October. According to Swift statistics, the yen is the fourth most widely used currency in the cross-border payments field, and a regulated yen stablecoin may play an important role in international payments in the future.
Noritaka Okabe, CEO of JPYC, pointed out at a press conference that the stablecoin will be fully convertible with the yen, backed by domestic savings and Japanese government bonds (JGB). The company plans to issue a scale of 1 trillion yen (68.1 billion USD) of JPYC stablecoins within three years. If JPYC is widely adopted, it could boost demand for Japanese government bonds, and "in the future, JPYC is likely to start purchasing Japanese government bonds in large quantities."
IV. Conclusion
SBI's comprehensive layout in the cryptocurrency field is not coincidental but is an inevitable choice for traditional financial giants facing an increasingly mature emerging industry. In the current situation where traditional financial infrastructure is continuously being reconstructed and the cryptocurrency regulatory framework is constantly being improved, actively embracing blockchain technology and the cryptocurrency industry is the right move in line with the times. Japan is also ushering in a year of breakthrough in cryptocurrency, with tax reform in cryptocurrency laying the regulatory foundation for a global cryptocurrency tax framework, and the introduction of yen-backed stablecoins will also promote the practical application of Japanese crypto assets in areas such as cross-border payments.
