BlackRock, SBI Holdings and Startale Group have signed a memorandum of understanding (MOU) to explore how tokenised money market funds (MMFs) could connect with the JPYSC yen stablecoin.

Two BlackRock entities, BlackRock Financial Management and BlackRock Japan, are party to the agreement.

JPYSC is a yen-denominated, trust-type stablecoin that SBI Group first issued in June, with Startale serving as its technology partner.

According to the companies, the tokenisation of products such as MMFs is gaining traction worldwide.

In Japan, amendments to the Payment Services Act have already established a legal framework for stablecoins.

The companies see the next step as building the infrastructure, distribution channels and regulatory frameworks needed to connect tokenised assets with stablecoins.

As part of the MOU, the partners will study the technology required to link tokenised MMFs with JPYSC.

They will assess potential business models and distribution opportunities, drawing on each company’s networks and market access.

A third area covers regulatory considerations and the development of the wider market for tokenised assets and stablecoins.

Financial institutions and businesses in Japan and overseas may also take part, as the collaboration is intended to be open to a broad range of participants.

“Through this collaboration with BlackRock and Startale, we will accelerate these efforts and help drive the transformation of financial markets in Japan and around the world,”

said Yoshitaka Kitao, Representative Director, Chairman and President at SBI Holdings.

“At BlackRock, we believe these innovations can help advance financial markets and deliver new value to investors in Japan,”

said Yukiko Hashimoto, President and Representative Director at BlackRock Japan.

Featured image: Edited by Fintech News Hong Kong, based on image by Magnific.