This proof of concept demonstrated end-to-end settlement of tokenized securities backed by JPYSC, along with automated on-chain dividend distribution, showcasing the potential of programmable capital markets. To conduct these technical demonstrations, the parties used a dedicated testnet token created solely for the purpose of technical validation. This testnet token is independent of and not equivalent to the regulated JPYSC issued in Japan. The associated PoC aimed to validate the workflows and infrastructure required for future integration with JPYSC.

Article author and source: DigiFT

July 15, 2026 – SBI Group, DigiFT, and Startale Group today announced the first proof-of-concept (PoC) initiatives demonstrating how Japan’s first trust-based yen stablecoin, JPYSC, can support the full lifecycle of tokenized securities. The joint PoC was conducted in an Ethereum testnet environment and included the following:

● Instant settlement for tokenized Japanese stock fund subscriptions using JPYSC

● Automate fund-level distributions in JPYSC on-chain

Drive the full blockchain integration of capital markets

Although tokenized securities have gained significant momentum globally, cash settlements and dividend payments still largely rely on traditional financial infrastructure. The joint PoC above jointly validated how regulated stablecoins and tokenized real-world assets (RWA) can modernize securities issuance, settlement, and yield distribution while preserving compliance and investor protection.

This joint initiative demonstrates how JPYSC serves as a settlement layer for tokenized investment products, enabling near-instant final settlement, programmable cash flows, and continuous on-chain operations. As part of this broader collaboration, SBI Group and DigiFT are advancing the tokenization of the SBI Japan High Dividend Equity Fund—one of Japan’s leading publicly traded equity funds with assets under management exceeding ¥200 billion. This tokenization partnership will create a new, regulated on-chain channel for global institutional investors to access Japanese equities. The PoC initiative is a structure-agnostic demonstration of JPYSC’s settlement and distribution capabilities.

The announced JPYSC settlement and dividend PoC establishes the key components required to support the full on-chain lifecycle of the fund. The dividend distribution PoC is an independent, structure-neutral demonstration of JPYSC’s capability to distribute returns to holders in tokenized products, unrelated to the aforementioned fund. SBI Asset Management Co., Ltd. (“SBI AM”) serves as the investment manager for the underlying fund strategy, DigiFT acts as the regulated tokenization platform, and Startale Group provides blockchain infrastructure and JPYSC expertise; the parties will collaborate on the following proof-of-concept initiative:

The first proof of concept demonstrated how the anticipated JPYSC settlement model enables near-instant settlement for tokenized Japanese equity fund subscriptions. By replacing the traditional multi-day settlement process with on-chain settlement, the PoC highlights its potential to reduce settlement risk, improve capital efficiency, enable 24/7 trading, and support programmable payment workflows for digital capital markets.

The second proof of concept demonstrates how testnet tokens representing JPYSC’s expected functionality can fully digitize dividend distribution, as some tokenized products pay interest dividends to holders. Once the distribution amount and holder registry are finalized, this PoC shows how smart contracts can directly calculate and distribute dividends to eligible token holders. In a production implementation, investors can immediately hold, reinvest, transfer, or redeem their JPYSC, enabling a faster, more transparent, and programmable dividend lifecycle.

Build the next-generation capital markets

This collaboration is among Asia’s first demonstrations showing how a testnet token representing a compliant Japanese stablecoin can be integrated into both the primary settlement and post-trade profit distribution of tokenized securities. The partnership also establishes key infrastructure supporting the broader three-party vision of building an on-chain capital market originating from Japan, connecting tokenized Japanese financial assets with regulated digital cash.

Tomoya Asakura, CEO of SBI Global Asset Management, said: “Although the asset management industry has made significant progress in reducing the costs of ETFs and mutual funds, the market infrastructure supporting trading, settlement, and distribution still has considerable room for improvement. This proof of concept explores the potential to transform the entire asset management lifecycle by combining tokenized assets with yen-denominated stablecoins, thereby enhancing efficiency and transparency. We believe these technologies have the potential not only to streamline operational processes but also to improve 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 real-world implementation of next-generation financial infrastructure and bringing Japanese innovation to the global stage.”

Sota Watanabe, CEO of Startale Group, said: "The future of capital markets will go beyond simply tokenizing assets—it will bring the entire trading lifecycle on-chain. This proof of concept demonstrates how regulated stablecoins like JPYSC can support every stage, from instant settlement to programmable dividend distributions, laying the foundation for a more efficient, transparent, and interoperable financial system."

Henry Zhang, Founder and Group CEO of DigiFT, said: “Regulated tokenization will only truly become infrastructure when its underlying settlement layer is interoperable. This proof of concept demonstrates how compliant stablecoins like JPYSC can be directly embedded into the operational model of asset manager-led tokenized funds, transforming typically static on-chain representations into tools that can truly circulate, settle, and distribute value in applicable scenarios. This further underscores why we built DigiFT’s infrastructure from the outset to support the full lifecycle—not just token issuance—and we anticipate this model will expand to a broader range of tokenized fund portfolios. Only with interoperable settlement infrastructure can manager-led, regulated tokenization achieve true institutional-scale adoption.”

Beyond these PoCs, the parties plan to explore future use cases such as lending, collateralization, and other programmable on-chain asset management by integrating tokenized Japanese equity assets with institutional-grade DeFi infrastructure through partnerships with ecosystem partners like Morpho and Gauntlet, within a regulated framework.

Overall, this collaboration presents a viable blueprint for the next generation of capital markets: tokenized assets and regulated digital cash working seamlessly together to enable faster execution, streamlined operations, and new opportunities for financial innovation. The three institutions plan to accelerate the commercialization of tokenized capital markets by advancing the production and deployment of regulated investment products supported by JPYSC, unlocking new on-chain financial use cases at an institutional scale.

About DigiFT

DigiFT is a next-generation tokenization platform for real-world assets (RWA), regulated by the Monetary Authority of Singapore (MAS) and the Securities and Futures Commission (SFC) of Hong Kong to conduct 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—built specifically for institutional-grade RWA. Trusted by global financial institutions, DigiFT is a blockchain-based tokenization and distribution partner to 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 provider of crypto solutions, on a mission to build the next civilization by bringing the world on-chain. The company co-developed Soneium with Sony Group Corporation and is developing Strium through SBI Holdings; Strium is a platform enabling 24/7 trading of tokenized securities. Startale supports on-chain finance with its native stablecoins JPYSC and USDSC, and has launched the Startale App—a SuperApp that integrates asset management, interactive engagement, and blockchain application exploration into a seamless experience.

Disclaimer

DigiFT and/or its affiliates make every effort to ensure the accuracy and reliability of the information provided, but do not guarantee its accuracy or reliability, and shall not be liable for any losses or damages arising from any inaccuracy or omission, or from any decisions, actions, or inactions based on or relying on the information contained herein, regardless of whether such liability arises from tort, contract, or other causes.

(JPYSC is regulated under the applicable Japanese regulatory framework but is not a stablecoin regulated by the Monetary Authority of Singapore. The token used in this proof-of-concept demonstration is an independent testnet token and does not constitute the regulated JPYSC.) This information does not constitute an invitation, recommendation, or offer to subscribe for, purchase, or enter into any transaction regarding the above product/service or any other service mentioned. The above product/service is available only through authorized and regulated intermediaries to accredited investors, professional investors, and institutional investors.

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