SBI Group, DigiFT, and Startale Group have wrapped up a joint proof-of-concept that maps the entire lifecycle of tokenized securities. The project used the JPYSC stablecoin to tokenize a $1.3 billion equity fund. The three firms say the PoC is a step toward bridging the gap in digital capital markets.
What the PoC covered
The demonstration tracked tokenized securities from issuance through trading and settlement, all on a blockchain-based platform. JPYSC, a trust-based Japanese yen stablecoin, served as the settlement asset. The partners tested how the stablecoin could move alongside the tokenized fund, ensuring that each trade settled in real time without relying on traditional banking rails.
DigiFT provided the exchange infrastructure for the tokenized assets. SBI Group, a major Japanese financial conglomerate, brought its experience in digital asset markets. Startale Group contributed its blockchain expertise. The three companies said the PoC showed that tokenized securities and stablecoins can work together in a regulated environment.
Why JPYSC matters
JPYSC is a stablecoin pegged to the Japanese yen and backed by trust-based reserves. Unlike some stablecoins that rely on bank deposits or commercial paper, JPYSC uses a trust structure that the partners say offers a clear legal framework. That matters for institutional investors who need certainty about what backs their digital assets.
The tokenized equity fund in the PoC is a real product, not a test dummy. It represents $1.3 billion in assets under management. By putting it on a blockchain, the partners aimed to show that large, regulated funds can be digitized and traded with the same efficiency as crypto tokens.
The PoC is finished, but the work isn't. SBI, DigiFT, and Startale are now looking at how to move from proof-of-concept to production. That means dealing with regulatory approvals, integrating with existing market infrastructure, and convincing traditional asset managers to take the leap.
One open question is how Japanese regulators will treat the tokenized fund and the JPYSC stablecoin once they go live. The partners have not announced a timeline for a commercial launch. For now, they have a working demo and a shared belief that digital capital markets need a bridge between old finance and new.
