After SBI Holdings announced the release of its yen-backed digital asset, JPYSC, on June 24, XRP Ledger validators moved swiftly to warn users about counterfeit tokens imitating the name and abbreviation. These warnings intensified after rumors spread that JPYSC had been issued on the XRP Ledger, even though SBI has not confirmed any deployment of JPYSC tokens on XRPL or any other public blockchain.
Fake JPYSC tokens appear after SBI Holdings’ new launch! What do investors need to watch out for?
The community raises red flags over fake JPYSC rumors
Hussein Zangana, a validator on XRP Ledger known as Vet, emphasized that there has been no public announcement from SBI regarding the issuance of JPYSC on the XRPL. He advised users to treat any asset appearing with the JPYSC code on the network with caution unless its origin can be definitively verified.
No public statement has been made by SBI on the issuance of JPYSC on XRPL. Users are urged to independently verify any asset using the JPYSC name before trading.
Other community members also reported that they have begun monitoring trustline activity linked to known SBI addresses. This oversight could make it easier to separate official on-chain movements from fraudulent ones if SBI ever launches an official token. Validators highlighted the importance of carefully checking the issuing address, trustline records, and token metadata for legitimacy.
Mini glossary: A trustline in XRP Ledger is a ledger record that allows an account to recognize tokens issued by a specific party. It is a key mechanism for tracking which asset comes from which issuer.
A central theme of the warnings is the ease with which individuals can create imitation tokens in public ledgers. As anyone can establish a token with a familiar name or ticker, community members cautioned that tokens should not be considered authentic based solely on their branding unless validated through official channels.
JPYSC currently confined to SBI VC Trade platform
SBI launched JPYSC as a yen-pegged stablecoin available to account holders on its SBI VC Trade platform on June 24. The asset is issued by SBI Shinsei Trust Bank and distributed via SBI VC Trade, which are both part of SBI Holdings, a major Japanese financial powerhouse active in banking, securities, and digital assets.
JPYSC was developed through collaboration between SBI and Startale Group. According to the company, this token is structured as a trust-type electronic payment instrument under Japan’s regulatory framework—a setup that eliminates the 1 million yen transaction cap seen in some digital payment products.
SBI stated that technical and operational preparations for public blockchain circulation of JPYSC are complete, but wallet and network transfers await tax and regulatory approvals.
For now, JPYSC is only available within SBI VC Trade accounts. Token holders cannot transfer it to external wallets or public blockchain networks yet, and SBI has not disclosed which public ledger it may eventually utilize for open transfers. As a result, speculation about JPYSC operating on XRP Ledger remains unsubstantiated without official confirmation.
SBI’s Chairman and CEO, Yoshitaka Kitao, recently stated that blockchain adoption in finance is now an irreversible trend. Startale founder Sota Watanabe said that, while technological requirements for external wallet transfers are complete, pending matters are mostly on the tax and regulatory front.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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