Author: Deng Tong, Golden Finance
Japanese financial giant SBI has recently been very active in the cryptocurrency sector. In August, Ripple, in collaboration with CB Insights and the UK Blockchain Technology Center, released a report indicating that Citigroup, JPMorgan, Goldman Sachs, and Japan's SBI Group have become the most active participants in the traditional financial sector supporting blockchain startups. Recently, SBI has partnered with Chainlink, Ripple, and Startale to promote the application of digital assets globally among institutions.
What are SBI's strategies in the crypto space? Why is SBI transitioning from traditional finance to a combination of traditional finance and crypto finance? What is the current state of the crypto landscape in Japan?
I. SBI's Crypto Strategies
1. Joining the Stablecoin Trend
On August 21, 2025, Ripple announced a partnership with Japan's SBI Group. Ripple's announcement mentioned a new memorandum of understanding with Ripple Labs regarding the distribution of RLUSD in Japan. SBI VC Trade (which completed registration in March to support USDC operations) aims to launch this stablecoin within the fiscal year ending March 2026. SBI stated, "The purpose of establishing this joint venture is to promote the use of USDC in Japan and create new use cases in the Web3 and digital finance sectors." SBI VC Trade CEO Tomohiko Kondo stated, "The launch of RLUSD not only expands the range of stablecoin options in the Japanese market but also represents an important step forward in the reliability and convenience of stablecoins in Japan."
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. This platform will combine SBI's financial ecosystem with Startale's blockchain infrastructure, supporting 24/7 trading of tokenized stocks, providing faster cross-border settlement and fractional ownership features. Other features include advanced account abstraction, institutional custody, and real-time compliance monitoring with international regulations. Startale Group founder Sota Watanabe stated, "We believe that the tokenized stock revolution is the biggest opportunity, and on-chain trading is the next frontier. While traditional markets are closed 70% of the time, our platform will support continuous, programmable trading of tokenized stocks, including domestic stocks from the US and Japan."
On July 17, 2018, SBI Holdings officially launched its cryptocurrency exchange, SBI VC Trade. On July 31, 2019, SBI VC Trade launched its virtual currency spot trading service, VCTrade Pro. On March 4, 2025, SBI VC Trade announced it had completed the first registration for trading Japanese stablecoins. After approval, it began processing USDC transactions on March 12. The company will be able to provide buying, selling, and deposit/withdrawal services for USDC to individual and corporate clients, and it is required to secure collateral in USD equal to or greater than the USDC deposited by clients, with SBI Group's new trust bank taking on the role of trust collateral.
3. Acquiring Web3 Media
On August 22, 2025, SBI Holdings announced it had signed a share transfer agreement with some existing shareholders of CoinPost, which operates Web3-related media and event businesses. Through this transaction, SBI Holdings will acquire a majority stake in CoinPost, making it a consolidated subsidiary of SBI Holdings, with the merger expected to be completed by October 1, 2025, pending all necessary share transfer procedures.
SBI Holdings Chairman and CEO Yoshitaka Kitao stated, "With CoinPost joining the SBI Group, we will further strengthen the reliable information infrastructure that CoinPost has built in the cryptocurrency and Web3 fields. While ensuring media impartiality, we will collaborate with companies under the group to accelerate the social implementation of Web3, contributing 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 explore tools that allow for the tokenization of real-world assets across blockchains, such as on-chain bonds, and use Chainlink's technology for on-chain verification of stablecoin reserves.
SBI noted that the collaboration with Chainlink will enable the company to apply its blockchain interoperability protocol to a range of use cases, including tokenizing RWA and facilitating foreign exchange and cross-border transactions. Chainlink co-founder Sergey Nazarov stated, "I am excited to see our excellent work moving towards large-scale production use."
On March 29, 2024, SBI Holdings, SBI Real Estate Finance, and Sumitomo Real Estate Sales collaborated to develop a blockchain-based real estate transaction document and data sharing solution, SREC. SREC can be used to share documents and data regarding the progress of sales transactions, making it more transparent.
5. Applying for ETFs
On July 31, 2025, SBI proposed the launch of two new exchange-traded funds covering XRP, BTC, and gold. SBI's crypto asset ETFs will provide direct investment in XRP and BTC. If approved, it will become a key catalyst for the adoption of XRP by Japanese institutions. By combining the growth potential of cryptocurrencies with the stability of gold, SBI offers a novel risk-adjusted investment tool. This strategy caters to a broader investor base and positions SBI as a pioneer at the intersection of traditional finance and blockchain innovation. Market analysts believe that SBI's initiatives 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's (MAS) "Project Guardian," launching a new pilot project aimed at promoting the application of tokenized securities in global markets. This subsidiary of the SBI Group is collaborating with financial institutions to develop a cross-border framework for tokenized assets, connecting regulated digital asset exchanges across multiple regions to enhance liquidity and reduce costs. The company announced on Monday that through its fixed income pilot project, SBIDM is creating an international network for securities backed by tokenized assets, covering initial issuance and secondary trading.
7. Entering the Chain Game Sector
On August 29, 2024, the chain game platform Oasys announced a strategic partnership with Japan's financial group SBI Holdings and received funding support. The collaboration with SBI Holdings will elevate Oasys to new heights, enhance the liquidity of the OAS token, and strengthen ecosystem development. Previously, Oasys had engaged in several collaborations with the SBI Group, including the launch 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, stated, "Oasys is a highly promising Japanese blockchain project designed for gaming applications. Since its inception, it has attracted several globally renowned large game development companies as initial validators. Our group has actively invested in the blockchain and cryptocurrency sectors since early on, starting with our investment in Ripple in 2016 and R3 in 2017, and has built an ecosystem capable of providing a wide range of products and services. Through our collaboration with Oasys, we are committed to further expanding the use cases of blockchain technology."
II. Why is SBI Transitioning from Traditional Finance to Traditional + Crypto Finance?
1. Japan's Regulatory Policies are Gradually Clarifying
In 2016, Japan amended the Payment Services Act, bringing virtual currencies under regulatory oversight 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 regulations, making Japan the first country in the world to issue licenses for cryptocurrency exchanges. The revised Fund Settlement Act in 2017 first included virtual currencies as legal payment instruments and established a licensing system for exchanges. This policy breakthrough directly led to SBI's establishment of the cryptocurrency exchange SBI VC Trade and obtaining a license in the same year.
The revision of the Financial Instruments and Exchange Act in 2020 clarified the legal status of security tokens (STOs), allowing them to be issued and traded using blockchain technology, with SBI Group becoming the first financial institution approved to conduct STO business.
On June 24, 2025, Japan's Financial Services Agency released a document announcing that it would seriously consider transferring the regulation of crypto assets from the Payment Services Act to the framework of the Financial Instruments and Exchange Act.
In summary, Japan's crypto regulatory framework is at the global forefront, and the increasingly refined regulatory system supports SBI's transition to crypto finance.
2. The Trend of Blockchain Restructuring Financial Infrastructure is Inevitable
The trend of blockchain technology restructuring 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 time from 3 days to 3 seconds. SBI is collaborating with Singapore's Startale to develop a blockchain stock digitization platform, planning to convert Japanese stocks into ERC-20 standard tokens by the end of 2026. Tokenized stocks can achieve T+0 real-time settlement, reduce trading costs by 70%, and support fractional ownership (e.g., 0.0001 shares).
Blockchain achieves a leap in financial efficiency through technological restructuring. As a traditional financial giant, SBI has embraced the trend of technological development, actively adopting blockchain technology in the wave of financial infrastructure restructuring, becoming a pioneer in the transformation of traditional financial enterprises alongside other traditional financial giants like BlackRock in the crypto space.
3. Seizing Discourse Power in the Crypto Industry
As of August 2025, the number of cryptocurrency trading accounts in Japan has surpassed 12 million, accounting for 9.5% of the total population, a 50% increase from 2024. Seizing discourse power in the increasingly large crypto industry is of significant importance to SBI. The SBI Group has deeply participated 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, led by SBI, received official certification from the Financial Services Agency (FSA) in 2020, becoming the only autonomous regulatory body in the field of stablecoins and security tokens. In 2020, SBI completed Japan's first security token offering (STO) by tokenizing the shares of its subsidiary SBI e-Sports, which directly prompted the FSA to amend the Financial Instruments and Exchange Act in 2021. As a leader in the Japan Digital Securities Issuance Association, SBI has promoted the establishment of the world's first self-regulatory framework (SRO) for digital securities, with relevant technical solutions incorporated into the 2023 Digital Securities Infrastructure Bill. In 2024, under Singapore's Monetary Authority (MAS) Project Guardian, SBI led the construction of a cross-border tokenized securities distribution framework, facilitating regulatory mutual recognition among exchanges in Japan, Singapore, and Switzerland, with related agreements included in the FSA's Digital Asset Cross-Border Trading Guidelines.
III. What is the Current State of the Crypto Industry in Japan?
Japan has long been recognized as a pioneer in the application and regulation of cryptocurrencies. Here are significant milestones in Japan's cryptocurrency regulation:
May 2016: In response to the Mt. Gox incident, the Financial Services Agency (FSA) established a regulatory framework for cryptocurrency service providers under the Payment Services Act (PSA).
April 2017: The revised Cryptocurrency Act from 2016 came into effect, defining cryptocurrencies 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 Japan.
January 2018: Cryptocurrency exchange Coincheck was hacked, resulting in the loss of approximately $530 million worth of NEM tokens at the time, leading to stricter regulations.
April 2018: As regulations tightened, cryptocurrency exchanges jointly established the Japan Virtual Currency Exchange Association (JVCEA).
October 2018: The FSA granted JVCEA self-regulatory status.
May 2020: The revised PSA and Financial Instruments and Exchange Act (FIEA) came into effect, further clarifying cryptocurrency regulation. Under the FIEA, cryptocurrency custody services were introduced, separating custody operations from exchanges and enhancing investor protection.
June 2022: The Japanese parliament enacted new regulations allowing licensed financial institutions to issue fiat-backed stablecoins, requiring issuers to fully back stablecoins with domestically held yen reserves.
April 2023: The Liberal Democratic Party of Japan released a white paper outlining strategies for Web3 and blockchain adoption, recommending adjustments to tax policies and the ETF approval framework.
June 24, 2025: The FSA proposed reclassifying crypto assets as traditional financial products and implementing a new tax regime. The new system is expected to take effect in 2026.
August 18, 2025: Japanese stablecoin issuer JPYC obtained a "money transfer service provider" license in Japan, marking the first time such a license has been issued to a digital currency issuer in Japan.
As mentioned above, the two major themes in Japan's crypto industry this year are cryptocurrency taxation and yen stablecoins.
On August 25, Japanese Senator Satsuki Katayama pointed out that Japan is pushing for a reclassification of cryptocurrencies, planning to move them from "miscellaneous income" to the regulatory framework of the Financial Instruments and Exchange Act, aiming to reduce the maximum tax rate from 55% to 20% (aligning with the United States). Currently, negotiations with multiple parties are underway, with the goal of finalizing a plan by the end of the year. If the adjustment of the cryptocurrency tax rate is implemented, the application of stablecoins in daily transactions may further proliferate.
Historically, Japan has been one of the countries with the strictest tax regimes for cryptocurrency investors. Under the current tax system in Japan, all profits from cryptocurrency transactions are classified as "miscellaneous income." This means that, unlike profits from stocks or real estate, earnings from cryptocurrency trading, consumption, or earning must pay progressive income tax. These tax rates typically range from 5% for low-income earners to 45% for high-income earners. Including a 10% local resident tax, the effective tax rate can reach as high as 55%, making it one of the highest cryptocurrency taxes in the world. However, with the passage of new tax regulations, Japanese financial regulators are expected to create one of the most investor-friendly tax structures globally.
Here is a comparison of the existing tax system for crypto assets and the proposed tax system:
According to previous reports from Nikkei, JPYC is expected to launch a regulated yen stablecoin before October. According to Swift statistics, the yen is the fourth most widely used currency in cross-border payments, and the regulated yen stablecoin may play an important role in international payments in the future.
JPYC CEO Noritaka Okabe pointed out at a press conference that the stablecoin will be fully convertible with the yen, backed by domestic savings and Japanese government bonds (JGB). The company plans to issue JPYC stablecoins worth 1 trillion yen (approximately $6.81 billion) within three years. If JPYC is widely used, it could boost demand for Japanese government bonds, with "JPYC likely to start purchasing Japanese government bonds in large quantities in the future."
IV. Conclusion
SBI's comprehensive layout in the crypto field is not coincidental but an inevitable choice for traditional financial giants in the face of an increasingly mature emerging industry. In the current context of traditional financial infrastructure being continuously restructured and the cryptocurrency regulatory framework being refined, actively embracing blockchain technology and the crypto industry is a response to the trends of the times. Japan is also ushering in a breakthrough year for crypto, with reforms in the crypto tax system laying the regulatory foundation for a global crypto tax framework, and the launch of yen stablecoins promoting the practical application of Japanese crypto assets in areas such as cross-border payments.
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