Monex Bets Big on Stablecoin to Stay Ahead of Digital Wave

Monex Group, a leading Japanese financial services company, is reportedly considering the issuance of a Japanese yen-pegged stablecoin, according to recent media reports. The move comes as the company seeks to remain competitive in the rapidly evolving digital finance landscape. Monex Group Chairman Oki Matsumoto emphasized the need to adapt to digital currency trends, noting that the company could be left behind if it fails to act. He stated that launching a stablecoin requires significant infrastructure and capital but is a necessary step to align with global developments [1].

The proposed stablecoin would be backed by assets such as Japanese government bonds and would be redeemable on a 1:1 basis with yen. Potential use cases include international remittances, corporate settlements, and retail transactions. Monex plans to leverage its existing platforms, including Coincheck—a local cryptocurrency exchange it owns—and Monex Securities, to facilitate the stablecoin's adoption [1]. The company also indicated it is in final negotiations to acquire a European blockchain-related firm, suggesting a broader strategy to expand its presence in Western markets [2].

Japan’s regulatory environment is shifting to accommodate stablecoins. The Financial Services Agency (FSA) is expected to approve the issuance of yen-pegged stablecoins in the near future, marking the first time the country has permitted a domestic fiat-backed digital currency. This regulatory shift follows Japan's decision to lift a ban on foreign stablecoins in 2023 and subsequent policy changes that ease stablecoin-related regulations. The FSA approved a report from a working group in February 2024 recommending these regulatory adjustments [1]. In April 2024, Japan’s second-largest bank, Sumitomo Mitsui Banking Corp. (SMBC), joined the race, partnering with Avalanche developer Ava Labs and FireBlocks to co-develop a yen-pegged stablecoin [2].

Monex is not the only firm exploring the potential of yen-backed stablecoins. JPYC, a startup, recently became the first to receive regulatory approval to issue such a coin. This development signals the beginning of a competitive market in Japan. Additionally, SBI Holdings, a major Japanese financial conglomerate, announced a partnership with SMBC to explore stablecoin distribution, further highlighting the growing interest in the sector [3].

The timing of Monex’s move is significant, as the global regulatory environment for stablecoins is also evolving. In the United States, the "Genius Act" was passed in July 2024, granting legal recognition to dollar-pegged stablecoins as currency. This legislative milestone is seen as a step toward greater stability and legitimacy for the sector, encouraging wider adoption by banks and payment companies. Japan’s regulatory developments reflect a similar trend, with the FSA positioning itself to balance innovation with investor protection [3].

Monex Group's initiatives, including its potential stablecoin and overseas expansion, align with a broader strategy to strengthen its role in the global digital finance market. As the company moves forward, it will likely face both opportunities and challenges, including the need to secure regulatory approvals, manage operational costs, and establish trust in the market for its new digital asset [1].

Source:

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

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

[3] Coincheck Parent Company Monex Weighs Yen-Pegged (https://www.mitrade.com/insights/news/live-news/article-3-1071574-20250827)