Monex Group, a publicly traded financial services company based in Tokyo, is exploring the possibility of launching a stablecoin pegged to the Japanese yen.
A report from TV Tokyo on Tuesday indicates that Monex Group’s Chairman, Oki Matsumoto, stated that the company is contemplating the issuance of a yen-backed stablecoin in Japan.
“Creating stablecoins requires substantial infrastructure and investment, but we must engage in this space to avoid being left behind,” Matsumoto remarked. He added:
“We will take appropriate actions.”Oki Matsumoto. Source: Wikidata
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Monex’s potential stablecoin
If Monex Group proceeds with the stablecoin, it would be secured by assets like Japanese government bonds. Similar to other stablecoins, it would be redeemable 1:1 with yen and is anticipated to facilitate international remittances and corporate transactions.
The company intends to capitalize on its ownership of Coincheck, a local cryptocurrency exchange, and its Monex securities brokerage to advance this initiative. Matsumoto also noted that Monex is contemplating the acquisition of European crypto-related firms, with a possible announcement “in the next few days.”
Negotiations for acquiring potential European crypto companies are reportedly in the final stages. This move would further enhance the Monex Group’s presence in the West, following the Nasdaq debut of Coincheck Group, the parent company of Coincheck, at the end of last year.
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Approaching Japanese stablecoins
This development comes after reports that Japan’s Financial Services Agency (FSA) is set to approve the issuance of stablecoins denominated in Japanese yen as soon as this fall, marking the first instance of the country allowing a domestic fiat-backed digital currency.
This follows the approval of Circle’s USD Coin (USDC), a stablecoin pegged to the US dollar, for use in Japan in late March. The report noted that a cryptocurrency subsidiary of the Japanese financial conglomerate SBI was developing support for USDC just as local regulations around stablecoins began to relax.
Changes in the local stablecoin landscape emerged after Japan lifted its ban on foreign stablecoins in 2023. In February, the FSA approved a report from a working group suggesting policy changes to relax stablecoin regulations.
Magazine: Stablecoins in Japan and China, India mulls crypto tax changes: Asia Express
