Mesh Takes 60% of Japan Crypto Venture With SBI, Money Forward

SBI Holdings, Mesh Connect and Money Forward have reached am agreement to set up Mesh SBI Money Forward Network KK, a Japanese joint venture for crypto purchases, transfers and payments, according to a release published on October 7. Mesh will hold 60% of the company, SBI Group 26% and Money Forward 14%, with capital of 100 million yen ($632,700).

The three companies intend to establish the venture in 2026, subject to definitive agreements, internal procedures and engagement with regulators. Its stated business is expanding crypto asset service provider operations in Japan, and it will focus primarily on the Japanese market.

The ownership split puts the US company in charge. Mesh, which builds API connections linking exchanges, wallets and payment services, will supply the core technology and products, while SBI contributes its financial infrastructure and regulatory compliance experience in Japan. Money Forward, an existing Mesh shareholder, will provide management support for the Japanese expansion. SBI Investment is also a Mesh backer, having taken part in the company's Series C. Binance agreed in July to lead a round valuing Mesh at $2 billion.

The venture's initial remit is narrow. It will assess feasibility in account connectivity and asset transfers between exchanges and wallets, simpler purchase and transfer flows, crypto and stablecoin payment infrastructure, and tokenised asset and payment services for financial institutions and enterprises. The release says stablecoin and tokenised asset services will be considered "over the longer term," depending on how the business and the regulatory environment develop.

The structure gives Mesh a locally licensed route into a market where it would otherwise have to register on its own. Japan requires crypto asset exchange service providers to register with the Financial Services Agency, and the country is moving crypto from the Payment Services Act into the Financial Instruments and Exchange Act, with most of the new rules expected to take effect in 2027. A venture that connects SBI's own exchange business, which is expanding through its acquisition of Bitbank, to wallets and services elsewhere would also feed transaction volume back to SBI.

The agreement remains preliminary. The companies said they will now work through specific business schemes and technical and regulatory requirements, and the release does not say which licences the venture will hold or when services will launch.