Ripple Partner SBI Expands Stablecoin Investment into Japanese Bonds

Ripple's partner SBI Holdings has expanded its stablecoin strategy for the JPYSC yen-pegged token. The company will now use a portion of its reserves to invest in short-term Japanese government bonds.

This move follows revisions to Japan's Payment Services Act, which went into effect on June 1, 2026. The revised framework allows eligible trust-backed stablecoins to hold up to 50% of their tokens in short-term government bonds or time deposits, as long as they comply with regulatory requirements.

SBI Shinsei Trust Bank has already invested 1 billion yen from JPYSC's backing assets into short-term Japanese government bonds. The total outstanding balance of the stablecoin ecosystem is now close to 27 billion yen, with a significant demand for lending.

The decision to invest in Japanese bonds comes as the country's bond market faces softer demand amid concerns about imported inflation and potential interest rate hikes by the Bank of Japan.