SBI Shinsei Trust Bank to Merge with Cryptocurrency Trust Company in December

Key Points of This Article

• The post-merger capital is expected to be 5.3 billion yen, with investment ratios maintained.
• Issuance of stablecoins and custody services will be provided by a single company.

Consolidating Trust and Custody Expertise at SBI Shinsei Trust Bank

On the 29th, SBI Holdings (SBIHD) and SBI Shinsei Bank announced that they will merge their subsidiary, SBI Shinsei Trust Bank, with SBI Clearing Trust effective December 31. This absorption merger will see SBI Shinsei Trust Bank as the surviving entity, integrating the company that has been handling cryptocurrency trust services with the issuer of the yen-denominated stablecoin "JPYSC."

The SBI Group positions the tokenization of real-world assets (RWA) and the expansion of on-chain transactions and settlements as an "irreversible social trend." With this merger, the trust and custody know-how of both companies will be consolidated into one entity, making SBI Shinsei Trust Bank the core of the group's digital finance. In addition to issuing stablecoins, the plan is to advance the provision of custody services for various digital assets and tokens.

Custody refers to the business of storing and managing assets on behalf of clients. In the case of cryptocurrencies and tokenized assets, secure management of assets, including private keys, is required.

Achievements in Cryptocurrency Trust and JPYSC

SBI Clearing Trust began accepting trusts for cryptocurrencies (spot) in July 2023. According to SBI, this was the first initiative by a domestic trust company.

SBI Shinsei Trust Bank is set to start issuing JPYSC in June 2026, with circulation managed by SBI VC Trade. According to the announcement materials, the issuance of a yen-denominated stablecoin backed by trust bank-managed assets is the first in the country (as of June 24, according to various companies).

JPYSC is classified as a type 3 electronic payment method under the Payment Services Act. SBI anticipates responding to large remittances and reducing remittance costs, while also considering its use overseas through exchanges with stablecoins in other currencies, such as the US dollar.

Merger Conditions and Post-Merger Structure

The effectiveness of the merger is contingent upon obtaining approval from the Financial Services Agency and the Kanto Local Finance Bureau. SBIHD, the sole shareholder of SBI Clearing Trust, will receive 13,000 shares of common stock in SBI Shinsei Trust Bank.

The trade name, representative, and location of the surviving company will remain unchanged. The investment ratio will also remain at 51% for SBI Shinsei Bank and 49% for SBIHD, inheriting the structure established through the stock transfer announced in March. The capital is expected to increase from 5 billion yen to 5.3 billion yen.

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