SBI, Mesh, Money Forward Plan Japan JV for Crypto Connectivity, Stablecoin Payments

SBI Holdings, crypto payments network Mesh and Tokyo-listed fintech Money Forward have signed a strategic agreement to form a joint venture that will build digital asset connectivity and payments infrastructure in Japan, the three companies announced on Wednesday. The venture is targeted to launch in Japan in the fourth quarter of 2026, subject to definitive agreements and regulatory approvals, with expansion across Asia-Pacific to be evaluated later.

The companies describe the venture as a connectivity layer across Japan's digital asset market, combining SBI's regulated financial infrastructure, Mesh's API network for linking exchanges and wallets, and Money Forward's fintech platform. Its stated remit covers five areas: account linking and asset transfers between exchanges and wallets, onboarding and purchase flows, infrastructure for regulated stablecoins, tokenized asset management for financial institutions and enterprises, and cross-border rails connecting digital assets, stablecoins and fiat payment networks.

"Our goal is to ensure that the next generation of digital money does not become another collection of closed ecosystems," said Jason Ne Win, APAC CEO of Mesh. Takuya Sugiyama, general manager at SBI Holdings, said interoperability would be "critical to unlocking" the potential of digital assets and regulated stablecoins as they integrate into the financial system.

The partners are not strangers to one another. Money Forward said it has been an investor in Mesh since 2023, and SBI Investment took part in Mesh's $75 million Series C in January, a round led by Dragonfly that valued the company at $1 billion and brought its total funding to more than $200 million. The joint venture effectively gives Mesh a local distribution arm backed by two of its own shareholders.

For SBI, the deal adds another piece to a digital asset strategy that has expanded quickly this year. In June the group agreed to acquire crypto exchange Bitbank for 46.7 billion yen, a deal SBI said would give it roughly 1.1 trillion yen in crypto assets under custody and about 2.92 million accounts once completed around October. An exchange-to-wallet connectivity product sits naturally alongside a consolidated exchange business of that size.

The timing also tracks Japan's regulatory overhaul. The Financial Services Agency's bill to move crypto assets from the Payment Services Act into the Financial Instruments and Exchange Act was approved by the Diet in July, introducing insider-trading rules and heavier penalties for unregistered operators, with most provisions expected to take effect in 2027.

The announcement leaves much undefined. The companies have not disclosed ownership stakes, capital commitments, a name for the venture or which licences it will need, and the agreement itself commits the parties only to evaluate commercial frameworks, technical architecture and regulatory requirements. With a Q4 target, those details will need to surface within the next three months for the launch date to hold.