Traditional asset management and stablecoin infrastructure are converging, and Japan is positioning itself at the center of it.
In a major boost for Japan’s race for tokenization, BlackRock partnered with Japan’s SBI Holdings and Startale, aiming to connect tokenized investment funds with a Japanese yen stablecoin.
According to the MOU, the trio will study the technological needs, business models, and regulations for connecting BlackRock’s tokenized BUIDL fund with JPYSC.
SBI’s Chairman Yoshitaka Kitao emphasized Japan’s need to lead the global shift to on-chain finance, stating that the shift to on-chain finance is ‘becoming an unavoidable global trend.’
In essence, the open partnership aims to advance on-chain applications while inviting other global institutions to participate.
Japan targets tokenization of 40% of the JGB repo market
In early August 2026, Global Government Finance reported that Japan sought to modernize its sovereign debt management. The government has, in recent times, attempted to align with the increasing number of global efforts to digitize state debt.
With the government’s support, the Digital Asset Co-Creation Consortium published a report proposing tokenized Japanese government bonds for on-chain repo. The target is to capture 40% of Japan’s JGB repo market, or around 106 trillion JPY. Currently, Japan’s repo market stands at around $1.6 trillion.
Moreover, Japan aims to bring the market on-chain. From November to March, a testnet based on the CC Network will connect domestic and international repo and collateral platforms while laying the groundwork for tokenization.
What could it mean for BUIDL?
While the tokenization of Japan’s domestic treasuries remains in the planning stages, Japan plays a key role globally.
In fact, Japan accounts for 15.4% of all unique wallet holdings of U.S. treasuries, and representing 0.4% of the total value, or $61.7 million.
This suggests there is already meaningful Japanese participation in tokenized Treasury products. As a result, BlackRock could find a receptive market for BUIDL if tokenization adoption continues to expand within Japan’s financial system.
Notably, BUIDL’s total value has declined by 4% to $2.17 billion, as previously reported by AMBCrypto. At the same time, the number of holders has also fallen to 101.
In this case, entry into the Japanese market will expand exposure and increase the number of users for BlackRock’s tokenized fund, which in turn will drive higher asset value.
Final summary
- BlackRock partnered with Japan’s SBI and Startale to connect tokenized investment funds with a Japanese yen stablecoin.
- Japan aims to tokenize 40% of Japan’s JGB repo market, or around 106 trillion JPY.
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