Monex Group Considers Yen-Pegged Stablecoin
The Tokyo-based publicly traded financial services company Monex Group is exploring the possibility of launching a stablecoin pegged to the Japanese yen.
A report from TV Tokyo on Tuesday revealed that Monex Group Chairman Oki Matsumoto mentioned that the company is contemplating the issuance of a yen-pegged stablecoin in Japan.
“Issuing stablecoins requires substantial infrastructure and capital, but if we do not engage with them, we will risk being left behind,” Matsumoto stated. He concluded:
If Monex Group proceeds with a stablecoin, it is expected to be backed by assets such as Japanese government bonds. Similar to many existing stablecoins, it would be redeemable 1:1 with yen, and aims to facilitate uses like international remittances and corporate settlements.
The company intends to utilize its ownership of the local cryptocurrency exchange Coincheck along with its Monex securities brokerage to further this initiative. Matsumoto also disclosed that Monex is looking into acquiring European crypto-related companies, hinting at a potential announcement “within a few days.”
Final negotiations for the acquisition of prospective European crypto firms are reportedly in progress. This move would enhance Monex Group’s presence in the West, particularly following the public listing of Coincheck Group, which is the parent company of Coincheck, on the Nasdaq stock exchange at the end of the previous year.
This news comes alongside recent developments where Japan’s Financial Services Agency (FSA) is gearing up to approve the issuance of Japanese yen-denominated stablecoins as early as this fall. This would mark the first instance of the country permitting a domestic fiat-pegged digital currency.
The situation follows the late March approval of Circle’s USD Coin (USDC), a stablecoin pegged to the US dollar, for use in Japan. This move came after the development of support for USDC by a cryptocurrency subsidiary of the Japanese financial conglomerate SBI, coinciding with the easing of local stablecoin regulations.
More Read
These changes in Japan’s stablecoin landscape began after the country lifted a ban on foreign stablecoins in 2023. In February of this year, the FSA approved a report from a working group suggesting policy amendments that would relax regulations related to stablecoins.
