Monex Group, a financial services company, is considering launching a stablecoin tied to the Japanese yen in response to regulatory changes.
Potential of the Yen-Linked Stablecoin
In a televised interview, Chairman Oki Matsumoto noted that issuing stablecoins requires significant infrastructure and capital. "If we don’t handle them, we’ll be left behind," he stated. Potential uses for the yen-backed stablecoin include international remittances and corporate settlements. Notably, Japan's annual remittances exceed $4.5 billion, highlighting demand for faster and cheaper digital settlement tools.
Expansion of Monex Group's Business
Monex Group owns the Japanese crypto exchange Coincheck and runs domestic brokerage services. By leveraging both aspects of its operations, the company aims to advance its stablecoin initiative. Coincheck has become one of Japan's largest digital asset platforms with over 1.8 million verified users. Additionally, there are plans to acquire European crypto-related firms to strengthen Monex's international presence.
Regulatory Changes in Japan
Japan is expected to approve the issuance of yen-denominated stablecoins sooner rather than later, marking the first such approvals in the country. Earlier this year, financial authorities supported recommendations to ease rules governing stablecoin issuance to promote digital asset adoption under regulated conditions.
Monex's entry into the stablecoin market could position it as one of the first major Japanese financial groups to issue locally backed stablecoins, enhancing its competitiveness on the global stage.
