Japan's Regulators Back Yen Stablecoin Push as Monex Eyes Global Expansion

Monex Group, Japan’s publicly traded financial services firm, is considering launching a yen-pegged stablecoin, according to reports. The company’s chairman, Oki Matsumoto, emphasized the importance of staying competitive in the evolving digital finance landscape. The proposed stablecoin would be backed by assets like Japanese government bonds and redeemable 1:1 for yen, with potential applications including international remittances and corporate settlements [1]. Monex Group, which owns the local crypto exchange Coincheck and the Monex securities brokerage, aims to leverage its existing infrastructure to expand its digital finance initiatives [1].

In addition to the stablecoin plans, Matsumoto hinted at a potential acquisition of European crypto-related companies, suggesting that final negotiations are underway and an announcement could come “within a few days.” This move aligns with Monex Group’s broader strategy to expand its global footprint, particularly in the West. Earlier this year, Monex Group’s parent company, Coincheck Group, made its public debut on the Nasdaq, signaling the firm’s growing international ambitions [1]. Analysts suggest that such strategic acquisitions could enhance Monex Group’s position in the global crypto market and strengthen its competitive edge.

Japan’s regulatory environment is also shifting in favor of stablecoin development. The Financial Services Agency (FSA) is preparing to approve the issuance of yen-denominated stablecoins as early as this fall, marking a significant policy shift. This follows the approval of Circle’s USD Coin (USDC) for use in Japan in late March and the easing of stablecoin-related regulations in early 2025 [1]. The FSA’s recent regulatory adjustments reflect a broader effort to foster a more flexible digital finance ecosystem in Japan.

The JPYC stablecoin, which received Japan’s first funds transfer service provider license in August, further underscores the government’s interest in promoting digital finance. JPYC operates on public blockchain infrastructure and is seen as a potential bridge between traditional financial institutions and the digital assets ecosystem. The approval of JPYC signals the government’s intent to reassert financial leadership in the Asia-Pacific region, particularly in response to the growing influence of China’s digital yuan and other integrated payment systems [2].

However, Japan’s conservative financial culture and past scandals—such as the 2024 DMM exchange hack and the 2018 Coincheck theft—continue to shape public and regulatory caution. These incidents have reinforced the need for strong consumer protections and a careful approach to adoption. Despite these challenges, JPYC and similar initiatives are viewed as potential catalysts for broader digital payments implementation in Japan, offering a homegrown alternative to U.S.-denominated stablecoins and potentially strengthening the yen’s role in international finance [2].

Regulatory and legislative support will be crucial for the success of Japan’s digital finance initiatives. In June 2025, the FSA proposed recognizing cryptocurrencies as financial products, which could lead to a more standardized 20 percent tax on crypto gains. However, translating these proposals into concrete reforms remains a challenge. Cross-border digital trade expansion and partnerships will also play a vital role in ensuring JPYC’s adoption and success in the broader financial landscape [2].

Source:

[1] Japan's Monex Group considers launching yen-pegged stablecoin (https://cointelegraph.com/news/japan-monex-group-considers-launching-yen-pegged-stablecoin)

[2] How the JPYC Stablecoin Could Lead Japan's Digital Finance Comeback (https://thediplomat.com/2025/08/how-the-jpyc-stablecoin-could-lead-japans-digital-finance-comeback/)