Monex Aims to Rewrite Japan's Digital Finance Future With Yen Stablecoin Push

Monex Group, a major Japanese financial services company, is considering the launch of a yen-pegged stablecoin, according to reports. The company’s chairman, Oki Matsumoto, emphasized the need to adapt to the evolving digital finance landscape, stating that failure to engage in stablecoin issuance risks falling behind competitors. Monex, which operates the local crypto exchange Coincheck and Monex securities brokerage, plans to leverage these platforms to expand its stablecoin initiative. The company is also in final negotiations to acquire European crypto-related firms, with a potential announcement expected within days, further signaling its intent to strengthen its international footprint in the digital asset sector [1].

If issued, Monex’s yen-pegged stablecoin would be backed by assets such as Japanese government bonds and would be redeemable at a 1:1 ratio with yen. It is expected to facilitate international remittances and corporate settlements. The move aligns with broader regulatory developments in Japan, where the Financial Services Agency (FSA) is preparing to approve the issuance of yen-denominated stablecoins as early as this fall. This would mark the first time Japan has authorized a domestic fiat-pegged digital currency, following the approval of USD Coin (USDC) in late March [1].

The potential approval of yen-pegged stablecoins is part of Japan’s broader digital finance strategy. In August, the stablecoin issuer JPYC received Japan’s first funds transfer service provider license, signaling the government’s intent to reassert financial leadership in the Asia-Pacific region. This development comes amid increased global competition, particularly from China’s digital yuan and other integrated digital payment systems. JPYC, which operates on public blockchain infrastructure, could help accelerate decentralized finance (DeFi) adoption in Japan and offer a viable alternative to U.S.-denominated stablecoins [2].

Despite growing interest in digital finance, Japan continues to face systemic challenges in widespread adoption. The country’s risk-averse culture and historical failures, such as the 2018 Coincheck theft and the 2024 DMM hacking, have reinforced strict regulatory frameworks and public skepticism toward digital assets. These incidents have also led to a strong preference for cash, particularly among the elderly, and have contributed to the Bank of Japan’s hesitation in launching a central bank digital currency (CBDC). Instead, the government has opted to support private issuers like JPYC to drive innovation in the financial sector [2].

Monex’s proposed stablecoin and JPYC’s recent regulatory approval indicate a pivotal moment for Japan’s digital finance sector. If successful, these initiatives could position Japan as a regional leader in digital currency innovation and help reduce reliance on U.S.-denominated stablecoins. The approval of JPYC could also serve as a catalyst for increased investment in Japan’s digital finance ecosystem, particularly if paired with supportive policies such as the recent proposal to classify cryptocurrencies as financial products and apply a uniform 20 percent tax on crypto gains. However, the success of these initiatives will depend on broader adoption by financial institutions and the public, as well as continued regulatory support [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/)