From Bank Account Straight to Yen Stablecoin — JPYC, SBJ Bank and LINE NEXT Put the "On-Ramp" Back in Banks' Hands

Who does what

The MOU has two parts. The first is a three-way collaboration on a proof of concept for "account-linked charging." SBJ Bank provides bank accounts and banking infrastructure; LINE NEXT provides digital wallets including Unifi and blockchain technology; and JPYC Inc., as issuer, supports the technical side of issuance and redemption. Together they will design, technically and operationally, the flow from account linking through stablecoin issuance to the balance appearing in the wallet, and test whether it works as a service. The second part is a bilateral strategic alliance between SBJ Bank and LINE NEXT to discuss commercializing new financial services, including remittance and payments, and joint promotion after the PoC. No timeline has been given, and general availability of the charging feature has not been decided.

Why direct bank links matter

JPYC became Japan's first stablecoin issuer registered as a funds transfer service provider in August 2025. It signed a basic agreement with LINE NEXT in January 2026 and has since become usable in Unifi. Getting hold of stablecoins, however, still involves too many steps — such as transferring funds to the issuer or going through an exchange — and this has been the biggest barrier to adoption. Charging directly from a bank account would make the experience almost identical to topping up a mobile payment app, all inside the LINE app people already use.

The bank's side of the equation

For SBJ Bank, building its accounts into the stablecoin "entry point" brings contact with Web3 users, fee opportunities in remittance and payments, and protection against deposit outflows. In the US, the worry has been that stablecoins pull money out of bank deposits; here the structure is reversed, with the bank controlling the inflow channel. JPYC Inc., whose revenue comes from returns on reserve assets, can grow circulation through an issuance route tied to bank accounts. Still, who will bear the charging fees and operating costs, and how, has not been disclosed. Whether the economics are sustainable is a question the PoC should answer.

Shinhan Group's two-sided approach

SBJ Bank is a Japanese bank founded in 2009 and part of Shinhan Financial Group. On the same day, Shinhan Card and SBI VC Trade signed a basic agreement to explore in-store payments with yen stablecoins and cross-border Japan–Korea settlement. One deal covers money going in from bank accounts, the other covers spending at merchants — Shinhan Group is now involved at both the entry and exit points of the yen stablecoin. This can be read as groundwork for a Japan–Korea remittance and payments corridor.

What to watch next

The next questions are the processing flow confirmed in the PoC and how responsibility for KYC and AML is divided. Linking to bank accounts could let stablecoin user verification rely on the bank's KYC, potentially reducing the burden on the wallet side.

[Business Development Insights]

1. The key to stablecoin adoption is the on-ramp, not issuance. Banks that offer direct charging from accounts will hold the customer relationship and the transaction data. Regional and online banks can design stablecoins not as a threat that drains deposits but as a way to increase the use of their own accounts.
2. Connecting one issuer to one bank through bespoke APIs multiplies combinations as participants grow. A connectivity layer that bundles multiple banks, issuers and wallets through standardized interfaces — a charging and redemption hub — could become an infrastructure business.
3. A foreign financial group is now involved at both the entry point (bank accounts) and exit point (merchant payments) of Japan's yen stablecoin. Domestic institutions should do more than watch the Japan–Korea corridor as competitors; it is time to map where in FX, remittance and merchant networks they could partner.

[Sources]

CoinPost https://coinpost.jp/?p=744198 New Economy (Gentosha) https://www.neweconomy.jp/posts/619021 JinaCoin https://jinacoin.ne.jp/jpyc-sbj-line-20261021/ BloomingBit https://jp.bloomingbit.io/feed/news/122648 plus web3 https://plus-web3.com/media/latestnews_1000_11161/ CoinPost, SBI VC Trade and Shinhan Card https://coinpost.jp/?p=744095 JPYC Inc. press release (JPYC available in Unifi) https://prtimes.jp/main/html/rd/p/000000318.000054018.html innovatopia, LINE NEXT–JPYC MOU https://innovatopia.jp/blockchain/blockchain-news/78046/