BlackRock, SBI Holdings and blockchain infrastructure company Startale Group have signed a memorandum of understanding (MOU) to explore connecting tokenized money market funds with JPYSC, a yen-denominated stablecoin, as Japan looks to expand the use of blockchain technology in traditional financial markets.
Announced on October 27, the agreement brings together BlackRock’s global asset management expertise, SBI’s financial services network and Startale’s blockchain infrastructure capabilities to examine how tokenized investment products and stablecoins could operate within a connected onchain financial ecosystem.
The initiative comes as financial institutions increasingly explore tokenization, a process that represents traditional financial assets on blockchain networks. Money market funds, which invest in short-term debt instruments, are among the products being explored for tokenization.
Connecting Traditional Investments With Blockchain-Based Money
While tokenization has created opportunities to represent conventional financial assets on blockchain networks, connecting those assets with digital payment and settlement infrastructure remains an important area of development.
The collaboration aims to explore that connection by examining how tokenized money market funds could interact with JPYSC, a trust-type stablecoin denominated in Japanese yen.
The companies will focus on three areas: technology and infrastructure, business models and distribution, and regulatory considerations.
On the technology side, the partners will assess the systems required to establish connectivity between tokenized funds and the stablecoin. They will also examine potential business models and distribution opportunities, using their respective networks and market access.
The regulatory component will focus on the frameworks needed to support the development of tokenized assets and stablecoins within Japan’s financial system.
The agreement remains exploratory, with no specific product launch, integration timeline or commercial deployment announced.
Financial Institutions Turn Toward Onchain Infrastructure
The partnership reflects a broader shift in how established financial institutions are approaching blockchain technology.
Rather than focusing exclusively on cryptocurrency trading, companies are exploring infrastructure that could support traditional financial products through blockchain-based systems.
SBI Holdings operates across securities, banking, insurance, asset management and crypto assets, while Startale develops blockchain infrastructure and applications designed to connect traditional finance with the onchain economy.
BlackRock’s participation adds global asset management expertise to the initiative, particularly as tokenized investment products attract increasing attention within financial markets.
Yukiko Hashimoto, President and Representative Director of BlackRock Japan, said advances in digital assets and tokenization are creating new possibilities for financial markets.
“At BlackRock, we believe these innovations can help advance financial markets and deliver new value to investors in Japan,” Hashimoto said.
Sota Watanabe, CEO of Startale Group, described connecting JPYSC with tokenized money market funds as an important step toward developing the foundations of onchain finance.
Japan’s Role in Tokenized Finance
Japan has already established a regulatory framework for stablecoins through amendments to its Payment Services Act, providing a legal foundation for their development.
However, creating an environment in which stablecoins and tokenized investment products can operate together requires additional infrastructure, distribution arrangements and regulatory coordination.
The BlackRock, SBI and Startale agreement is intended to examine those requirements while opening the initiative to participation from other financial institutions and businesses in Japan and internationally.
For the three companies, the objective is to explore how traditional investment products and blockchain-based money could be connected as the market for tokenized financial assets continues to develop.
Whether those efforts lead to a commercial offering will depend on the technical, business and regulatory findings of the collaboration.
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