- Monex plans a fully collateralized yen stablecoin to expand Japan’s digital payment use.
- It uses Coincheck and Monex Securities for infrastructure, expanding globally via EU acquisition.
- Japan enters the $270B global stablecoin market, currently dominated by USD tokens.
Monex Group, a Tokyo-based financial services company, has announced that it is considering issuing a stablecoin pegged to the Japanese Yen. Assets, including Japanese government bonds, would back the stablecoin, which could be redeemed one-to-one with the yen. This announcement is made following increasing regulatory changes in Japan, as the country prepares to issue its own fiat-backed digital currencies.
Monex’s Yen-Pegged Stablecoin: Key Features and Use Cases
In an interview with TV Tokyo, Monex Chairman Oki Matsumoto stated that the company has been considering launching the yen-pegged stablecoin. With its adoption, the stablecoin would become an efficient digital currency that can be used in international remittances and corporate settlements. Matsumoto said that there was a need to proceed with the issuance of stablecoins, saying, “If we don’t handle it, we’ll be left behind.”
The stablecoin would be backed by Japanese government bonds, which is in line with the models of the other fiat-pegged stablecoins. As an asset pegged to the yen, the coin will have lower volatility, which would make it more suited to a wide range of applications involving financial services, including decentralized finance (DeFi).
To support the stablecoin’s development and launch, Monex plans to leverage its existing businesses, including the Coincheck crypto exchange and Monex Securities. By using this infrastructure and its broad market reach, the company aims to play a major role in Japan’s expanding digital asset ecosystem.
Monex Expands Its Global Footprint With European Acquisitions
In addition to its yen-pegged stablecoin plans, Monex plans to expand its global operations. Matsumoto disclosed that the company is finalizing a deal to acquire a European crypto-related company.
The acquisition indicates that Monex is set to expand its presence outside Japan. Through its stablecoin aspirations and international acquisitions, the company hopes to capitalize on the increasing interest in digital currencies and blockchain technology internationally. With the stablecoin market gaining momentum in Japan, Monex has the opportunity to expand its reach in both local and foreign cryptocurrency markets.
Related: Japan’s SBI Group Joins Chainlink to Build Crypto Tools for Banks
Japan’s Regulatory Shift Opens Doors for Stablecoin Issuance
Furthermore, the regulatory framework in Japan has also been evolving to promote the expansion of stablecoins. Japan began preparing to approve yen-pegged stablecoins under the guidance of the Financial Services Agency (FSA), the financial regulator. This change comes after the lifting of the ban on foreign-issued stablecoins in 2023 and the March authorization of Circle’s USDC for use within Japan.
The regulatory developments aim to establish more clarity in stablecoin issuance and foster stability and transparency in the industry. Earlier this month, the FSA approved the first domestic stablecoin issuer, JPYC, which intends to issue a yen-backed stablecoin.
The Japanese-based fintech startup JPYC will introduce a fully collateralized token backed by bank deposits and Japanese government bonds. Leading financial institutions like SMBC (Sumitomo Mitsui Banking Corporation) and blockchain developers like Ava Labs have also begun to investigate the issuance of stablecoins.
If launched, these stablecoins could mark the long-anticipated entry of the yen into the $270 billion stablecoin market, which is currently dominated by U.S. dollar–pegged coins such as Tether’s USDt and Circle’s USDC.
