Monex Group Weighs Yen-Backed Stablecoin, Plans European Crypto Acquisition

Monex Group is considering launching a yen-pegged stablecoin and is in final talks to acquire a European crypto-related company. Chairman Oki Matsumoto said in a TV Tokyo interview that the group must act on stablecoins or risk falling behind.

Yen-Pegged Digital Currency on the Horizon

Matsumoto said Monex is considering issuing a stablecoin backed by Japanese government bonds and redeemable one-to-one with the yen. He pointed to international remittances and corporate settlements as likely use cases.

The company plans to draw on its local crypto exchange Coincheck and Monex Securities brokerage to expand the offering. “Issuing a stablecoin Stablecoin Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Read this Term requires significant scheming and capital, but if we don’t handle it, we won’t be able to keep up with the times,” Matsumoto said.

Stablecoin projects are gathering pace in Japan after regulators eased rules last year. The Financial Services Agency approved startup JPYC as the first domestic issuer this month, while SBI Holdings and Sumitomo Mitsui Banking Corporation have announced plans to explore issuance. Circle’s USDC was also cleared for local use in March.

The shift mirrors global trends. This summer, the United States passed legislation to boost credibility for dollar-pegged tokens.

Global Expansion Strategy

Matsumoto added that Monex is close to announcing the purchase of a European blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term company, with final negotiations underway. The deal would follow the Nasdaq listing of Coincheck Group last December, which the chairman said would support further acquisitions abroad.

Meanwhile, Monex Europe Holdings Limited (MEHL) ended 2024 in the red despite an uptick in trading revenues, as the foreign exchange services provider poured resources into technology upgrades and restructuring efforts.

The subsidiary reported a pre-tax loss of £2.3 million, narrowing from a £5.3 million loss in 2023. Meanwhile, net trading income rose to £77.2 million, up from £73.3 million the previous year.

Read more: FX Services Firm Monex Europe Holding Limited Posts £2.3 Million Annual Loss

The company said the losses stemmed largely from one-off expenses tied to what it described as a “structural reorganization and transformation program.” Despite the setback, the group framed the spending as part of a longer-term strategy to strengthen its competitive edge in Europe’s FX market.

Alongside the restructuring, Monex advanced its European expansion by securing investment and payment licenses in Spain early last year.