Monex Aims to Mint Digital Yen's Future in Japan's Crypto Race

Monex Group, a leading Japanese financial services company, is preparing to enter the stablecoin market by considering the launch of a yen-pegged stablecoin backed by Japanese government bonds. This initiative, outlined by Chairman Oki Matsumoto in a recent TV Tokyo interview, reflects the company’s strategy to stay competitive in a rapidly evolving digital finance landscape. Matsumoto emphasized the importance of such a move, stating that failure to adapt could leave the company “left behind.” The stablecoin would operate on a 1:1 redemption basis with the yen and could be utilized for international remittances, corporate settlements, and potentially decentralized finance (DeFi) applications [1].

Monex Group plans to leverage its existing infrastructure, including its ownership of crypto exchange Coincheck and its Monex securities brokerage, to support the initiative. These platforms will serve as key distribution channels for the stablecoin, aligning with the company’s broader digital transformation efforts. The potential for a yen-backed stablecoin is further supported by Japan’s regulatory environment, which has recently become more accommodating. In early 2025, the Financial Services Agency (FSA) approved JPYC, the first domestic stablecoin issuer, signaling a shift toward regulatory clarity and industry expansion [2].

This regulatory green light has prompted other Japanese institutions to explore similar projects. For instance, Sumitomo Mitsui Banking Corporation (SMBC), Japan’s second-largest bank, has partnered with Ava Labs and Fireblocks to develop a yen-pegged stablecoin expected to launch in the coming year. Meanwhile, SBI Holdings, a major player in Japan’s cryptocurrency sector, has also announced plans to issue its own digital currency. These developments underscore a growing consensus among financial institutions that stablecoins can enhance efficiency in payments and financial services [3].

Monex’s stablecoin ambitions are part of a larger global strategy, including a planned acquisition of a European crypto-related company. According to Matsumoto, the acquisition is nearing finalization, with a potential announcement expected within days. This move would follow the Nasdaq listing of Monex Europe Holdings (MEHL), which provides additional capital and strategic flexibility for the group’s international expansion. Despite posting a pre-tax loss of £2.3 million in 2024, the company has continued investing in technology upgrades and restructuring to strengthen its position in the European foreign exchange market [2].

Japan’s evolving stablecoin landscape is also being shaped by broader regulatory and market shifts. The FSA’s decision to lift the ban on foreign stablecoins in 2023 and its approval of Circle’s USDC in early 2025 have paved the way for increased competition and innovation. Additionally, Japan has begun to align with global trends, such as the U.S. legislative efforts to establish a legal framework for dollar-pegged stablecoins. These developments indicate that Japan is positioning itself as a key player in the global digital asset ecosystem [1].

Analysts suggest that a yen-backed stablecoin could offer several advantages over traditional financial instruments. Its stability makes it an attractive option for businesses seeking to reduce exposure to volatile assets, while its potential for integration into DeFi platforms could foster innovation in financial services. Furthermore, the use of blockchain technology could streamline cross-border transactions and reduce costs compared to conventional banking systems. If Monex successfully launches its stablecoin, it could set a precedent for other Japanese institutions and establish a digital yen standard, potentially rivaling U.S. dollar-pegged stablecoins in the region [7].

The potential approval and adoption of a yen-backed stablecoin could also have broader economic implications for Japan. It may support the country’s efforts to modernize its financial infrastructure, reduce cash dependency, and enhance its role in the Asia-Pacific financial ecosystem. As JPYC and other projects gain traction, Japan could emerge as a counterbalance to China’s e-CNY and other regional digital currency initiatives, reinforcing its influence in the Indo-Pacific. However, the success of these efforts will depend on regulatory continuity, institutional adoption, and the integration of stablecoins into Japan’s mainstream financial systems [5].

Source:

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

[2] Monex Group Weighs Yen-Backed Stablecoin, Plans European Crypto Acquisition (https://www.financemagnates.com/institutional-forex/monex-group-weighs-yen-backed-stablecoin-plans-european-crypto-acquisition/)

[3] Japan's First Yen Stablecoin Gains Backing From Monex (https://www.ccn.com/news/business/monex-joins-push-for-jpy-stablecoin/)

[4] Ripple Partners SBI for Japan Stablecoin Distribution (https://fintechmagazine.com/news/ripple-partners-sbi-for-japan-stablecoin-distribution)

[5] 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/)

[6] Ripple and SBI to launch RLUSD stablecoin in Japan by 2026 (https://thedigitalbanker.com/ripple-and-sbi-to-launch-rlusd-stablecoin-in-japan-by-2026/)

[7] Monex Group Plans Yen-Pegged Stablecoin as Japan's Regulators Clear the Path for Domestic Digital Currency Innovation (https://coinlaw.io/monex-yen-stablecoin-japan-regulation/)