BlackRock has partnered with Japan's SBI Holdings and Startale to advance tokenization infrastructure in Japan. According to a memorandum of understanding, the three parties will study the technological requirements, business models, and regulatory framework needed to connect BlackRock's tokenized BUIDL fund with JPYSC, a Japanese yen stablecoin.
SBI Chairman Yoshitaka Kitao characterized the shift to on-chain finance as an "unavoidable global trend," emphasizing Japan's position to lead this transition. The partnership represents a broader effort to advance on-chain applications and invites participation from other global institutions.
Japan's Tokenization Targets
Japan's government has set an ambitious goal to tokenize 40% of its Japanese government bond (JGB) repo market, representing approximately 106 trillion JPY. The country's repo market currently stands at around $1.6 trillion.
The Digital Asset Co-Creation Consortium has published a report proposing tokenized Japanese government bonds for on-chain repo markets. From November to March, a testnet based on the CC Network will connect domestic and international repo and collateral platforms to establish groundwork for broader tokenization.
Implications for BUIDL
Japan accounts for 15.4% of all unique wallet holdings of U.S. treasuries, representing 0.4% of total value, or $61.7 million. This existing participation in tokenized Treasury products suggests potential demand for BlackRock's BUIDL fund in Japan.
BlackRock's BUIDL currently has a total value of $2.17 billion with 101 holders. Expansion into the Japanese market could broaden the fund's user base and increase its asset value as tokenization adoption grows within Japan's financial system.
