Understanding SBI’s 7 Major Cryptocurrency Layouts What is the Current Status of Japan’s Cryptocurrency Industry?

I. SBI's Crypto Investment

1. Joining the Stablecoin Boom

On August 21, 2025, Ripple announced its partnership with Japan's SBI Group. Ripple's announcement mentioned a new memorandum of understanding with Ripple Labs for the distribution of RLUSD in Japan. SBI VC Trade (which completed registration in March to support USDC operations) aims to launch the stablecoin within the fiscal year ending March 2026. SBI stated, "The purpose of this joint venture is to promote the use of USDC in Japan and create new use cases in Web3 and digital finance." SBI VC Trade CEO Tomohiko Kondo said, "The launch of RLUSD not only expands the range of stablecoins available in the Japanese market but also represents a significant step forward in the reliability and convenience of stablecoins in the Japanese market." 2. Building a Trading Platform On August 21, 2025, SBI Holdings announced a strategic partnership with crypto 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 to support 24/7 trading of tokenized stocks, offering faster cross-border settlement and fractional share ownership capabilities. Other features include advanced account abstraction, institutional custody, and real-time compliance monitoring for international regulations. Sota Watanabe, founder of Startale Group, stated, "We believe the tokenized stock revolution presents the greatest opportunity, and on-chain trading is the next frontier. While traditional markets are closed 70% of the time, our platform will enable continuous, programmable trading of tokenized stocks, including domestic stocks in the United States and Japan." In October 2016, SBI Holdings established its wholly-owned subsidiary, SBI Virtual Currency Corporation, to launch Japan's first digital currency exchange fully backed by a major financial institution. In September 2017, the platform completed business registration with the Financial Services Agency (FSA) of Japan, and in October of the same year, became one of the first 11 companies to receive digital asset financial exchange licenses from the FSA. On March 4, 2025, SBI VC Trade announced the completion of Japan's first registration for a stablecoin exchange. Following approval, it will begin processing USDC transactions on March 12th. The company will be able to offer USDC trading, deposits, and withdrawals to individual and corporate clients. It will be required to secure USD collateral equal to or greater than the USDC deposited by clients. SBI Group's Shinsei Trust Bank will assume this trusteeship role.

3. Acquisition of Web3 Media

On August 22, 2025, SBI Holdings announced the signing of a share transfer agreement with certain existing shareholders of CoinPost, which operates Web3-related media and events. 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 on October 1, 2025, subject to completion of all necessary share transfer procedures.

SBI Holdings Chairman and CEO Yoshitaka Kitao said: "With CoinPost joining the SBI Group, we will further strengthen the reliable information infrastructure that CoinPost has built in the fields of cryptocurrency and Web3. While ensuring the impartiality and neutrality of the media, we will work together with group companies to accelerate the social implementation of Web3 and contribute to the construction of a new financial and digital industry foundation, thereby promoting the development of Japan's crypto industry."

4. Creating Crypto Tools

On August 25, 2025, SBI Group partnered with blockchain oracle platform Chainlink. SBI and Chainlink will research tools that allow cross-blockchain tokenization of real-world assets, such as on-chain bonds, and use Chainlink's technology to provide on-chain verification for stablecoin reserves.

SBI pointed out that the transaction with Chainlink will enable the company to use its flagship blockchain interoperability protocol for a range of use cases, including tokenizing RWA and helping to facilitate foreign exchange and cross-border transactions. Chainlink co-founder Sergey Nazarov said, "I'm delighted to see our excellent work progressing toward large-scale production use."

On March 29, 2024, SBI Holdings, SBI Real Estate Finance, and Sumitomo Real Estate Sales collaborated to develop SREC, a blockchain-based solution for sharing documents and data on real estate transactions. SREC can be used to share documents and data on the progress of sales transactions, providing greater transparency.

5. ETF Application

On July 31, 2025, SBI proposed launching two new exchange-traded funds covering XRP, BTC, and gold. SBI's crypto ETFs will provide direct investment in XRP and BTC. If approved, they will be a key catalyst for driving XRP adoption among Japanese institutions. By combining the growth potential of cryptocurrencies with the stability of gold, SBI offers a novel risk-adjusted investment vehicle. This strategy appeals to a wider investor base and positions SBI as a pioneer at the intersection of traditional finance and blockchain innovation. Market analysts believe SBI's move may prompt other financial institutions to launch similar products.

6. Expanding Global Markets

On November 5, 2024, Japan's SBI Digital Markets strengthened its role in the Monetary Authority of Singapore (MAS)'s "Project Guardian," launching a new pilot program aimed at promoting the use of tokenized securities in global markets. The Japanese subsidiary of SBI Group, working with financial institutions, is developing a cross-border framework for tokenized assets, connecting regulated digital asset exchanges across multiple regions to improve liquidity and reduce costs. The company announced on Monday that through its fixed income pilot program, SBIDM is creating an international network for tokenized asset-backed securities, covering both initial issuance and secondary trading.

7. Entering the Blockchain Gaming Market

On August 29, 2024, blockchain gaming platform Oasys announced a strategic partnership and received financial support from Japanese financial group SBI Holdings. The partnership with SBI Holding will propel Oasys to new heights, increase OAS token liquidity, and strengthen ecosystem development. Oasys has previously collaborated with the SBI Group on various projects, including the listing of the OAS token on SBI VC Trade in May 2023 and integration with SBINFT Market. Yoshitaka Kitao, Representative Director, Chairman, President, and CEO of SBI Holdings, said, "Oasys is a promising Japanese blockchain project designed specifically for gaming applications. Since its inception, it has attracted several major, globally renowned game development companies as initial validators. Our Group has actively invested in the blockchain and cryptocurrency space from an early stage, beginning with investments in Ripple in 2016 and R3 in 2017, and has built an ecosystem that offers a wide range of products and services. Through our partnership with Oasys, we are committed to further expanding the use cases of blockchain technology." II. Why is SBI shifting from traditional finance to traditional + crypto finance? 1. Japan's Regulatory Policy is Gradually Opening Up In 2016, Japan amended its Payment Services Act, bringing virtual currencies under its regulatory umbrella for the first time, 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 for cryptocurrency exchanges. The 2017 revision of the Funds Settlement Act included virtual currencies as legal payment instruments for the first time and established a licensing system for exchanges. This policy breakthrough directly led to SBI establishing and licensing its crypto exchange, SBI VC Trade, that same year. In 2020, the Financial Instruments and Exchange Act was amended to clarify the legal status of security tokens (STOs), allowing their issuance and trading through blockchain technology. SBI Group became the first financial institution approved to conduct STO business. On June 24, 2025, Japan's Financial Services Agency (FSA) announced it would seriously consider shifting crypto asset regulation from the Payment Services Act to the Financial Instruments and Exchange Act. In short, Japan's crypto regulatory framework is among the world's leading, and this increasingly sophisticated system is supporting SBI's transformation into crypto finance. 2. The unstoppable trend of blockchain technology reshaping financial infrastructure is the core driving force behind SBI's transformation. Through its joint venture, SBI Ripple Asia, SBI uses XRP as a bridge currency for cross-border settlements, reducing remittance costs from Japan to the Philippines by 30% and shortening settlement times from three days to three seconds. SBI is collaborating with Singapore's Startale to develop a blockchain-based stock digitization platform, with plans to convert Japanese stocks into ERC-20 tokens by the end of 2026. Tokenized stocks enable T+0 real-time settlement, reducing transaction costs by 70%, and support fractional holdings (e.g., 0.0001 shares). Blockchain isn't a disruption to traditional finance; rather, it's a leap in efficiency achieved through technological reconstruction. As a traditional financial giant, SBI has embraced the trend of technological development and actively embraced blockchain technology amidst the restructuring of financial infrastructure. Along with other traditional financial giants like BlackRock, SBI has become a pioneer in the transformation of traditional financial companies in the crypto space. 3. Seizing a Voice in the Crypto Industry By August 2025, the number of cryptocurrency trading accounts in Japan will exceed 12 million, representing 9.5% of the total population, a 50% increase from 2024. Seizing a voice in the increasingly large crypto industry is crucial for SBI. SBI Group has been deeply involved in the formulation and implementation of Japan's cryptocurrency and digital asset regulatory policies over the past few years, demonstrating its influence. The Japan STO Association, founded under SBI's leadership, received official accreditation from the Financial Services Agency (FSA) in 2020, becoming the sole autonomous regulatory body for stablecoins and security tokens. As the leader of the Japan Association of Digital Securities Issuers, 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 2020, SBI completed Japan's first security token offering (STO), tokenizing shares of its subsidiary SBI e-Sports. This directly prompted the FSA to revise the Financial Instruments and Exchange Act in 2021. In 2024, SBI led the construction of a cross-border tokenized securities distribution framework within the Monetary Authority of Singapore's (MAS) Project Guardian, promoting mutual regulatory recognition among exchanges in Japan, Singapore, and Switzerland. The relevant agreement was incorporated into the FSA's Guidelines for Cross-Border Transactions of Digital Assets. III. What is the Current State of Japan's Crypto Industry? Japan has long been recognized as a pioneer in cryptocurrency adoption and regulation. The following are significant timelines for cryptocurrency regulation in Japan:

May 2016: In response to the Mt. Gox incident, the Japanese Financial Services Agency (FSA) established a regulatory regime for crypto asset service providers under the Payment Services Act (PSA).

April 2017: The 2016 revised Cryptocurrency Act came into effect, defining cryptocurrency under Japanese law. Exchanges must register with the FSA, comply with Anti-Money Laundering/Know Your Customer (AML/KYC) standards, and implement strict cybersecurity measures.

September 2017: The FSA approved 11 exchanges, officially marking the beginning of regulated cryptocurrency trading in the country. January 2018: The cryptocurrency exchange Coincheck suffered a hack, resulting in the loss of approximately $530 million in NEM tokens at the time, prompting stricter regulation. April 2018: Following tightening regulations, cryptocurrency exchanges joined together to establish the Japan Virtual Currency Exchange Association (JVCEA). October 2018: Japan's Financial Services Agency granted the JVCEA self-regulatory status. May 2020: The revised Public Service Act (PSA) and Financial Instruments Exchange Act (FIEA) took effect, further clarifying cryptocurrency regulation. Under the FIEA, cryptocurrency custody services were introduced, separating custody operations from exchanges and increasing investor protection. June 2022: Japan's parliament introduces new regulations allowing licensed financial institutions to issue fiat-backed stablecoins, requiring issuers to fully back the stablecoins with domestically held yen reserves. April 2023: Japan's Liberal Democratic Party releases a white paper outlining its strategy for Web3 and blockchain adoption, proposing adjustments to tax policy and the exchange-traded fund (ETF) approval framework. June 24, 2025: Japan's Financial Services Agency (FSA) proposes reclassifying crypto assets as traditional financial products and implementing a new tax regime. The new regime is expected to take effect in 2026. August 18, 2025: Japanese stablecoin issuer JPYC receives a "funds transmission service provider" license in Japan, claiming it is the first such license issued to a digital currency issuer in Japan. As mentioned above, the two major themes for Japan's crypto industry this year are cryptocurrency taxation and yen-denominated stablecoins. On August 25th, Japanese Senate member Satsuki Katayama announced that Japan is pushing for a reclassification of cryptocurrencies, moving them from "miscellaneous income" to the Financial Instruments and Exchange Act, aiming to reduce the maximum tax rate of 55% to 20% (in line with the United States). This plan currently requires multi-party consultations, with the goal of finalizing the plan by the end of the year. If the cryptocurrency tax rate adjustment is implemented, the use of stablecoins in everyday transactions could become even more widespread. Historically, Japan has had one of the strictest tax systems for cryptocurrency investors. Under Japan's current tax system, all profits from cryptocurrency trading are classified as "miscellaneous income." This means that, unlike profits from stocks or real estate, gains from cryptocurrency trading, consumption, or earnings are subject to progressive income tax. These rates typically range from 5% for low-income earners to 45% for high-income earners. If the 10% local resident tax is included, the effective tax rate can reach up to 55%, making it one of the highest cryptocurrency taxes in the world. However, with the passage of the new tax regulations, Japan's financial regulators are expected to create one of the most investor-friendly tax structures in the world. Below is a comparison of the existing and proposed tax systems for crypto assets: The Nikkei Shimbun previously reported that JPYC expects to launch a regulated yen stablecoin by October. According to Swift statistics, the yen is the fourth most widely used currency in cross-border payments, and a regulated yen stablecoin could play a significant role in international payments in the future. JPYC CEO Noritaka Okabe stated at a press conference that the stablecoin will be fully convertible with the Japanese yen and backed by domestic savings and Japanese Government Bonds (JGBs). The company plans to issue 1 trillion yen (US$6.81 billion) of JPYC stablecoins within three years. If JPYC becomes widely used, it could boost demand for Japanese government bonds, and "JPYC is likely to begin purchasing large quantities of JGBs in the future." SBI's comprehensive approach to cryptocurrencies is no accident; it's a necessary choice for traditional financial giants facing an increasingly mature emerging industry. As traditional financial infrastructure continues to restructure and the crypto regulatory framework continues to improve, actively embracing blockchain technology and the crypto industry is a move that aligns with the times. Japan is also poised for a breakthrough year for cryptocurrencies. Crypto tax reform will lay the regulatory foundation for a global crypto tax framework, and the launch of the Japanese yen stablecoin will also promote the practical application of Japanese crypto assets in real-world financial applications such as cross-border payments.