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SBI, Mesh Connect and Money Forward Form Digital-Asset JV in Japan

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SBI, Mesh Connect and Money Forward Form Digital-Asset JV in Japan

The ownership structure gives Mesh Connect, the California-headquartered API connectivity provider, a 60% controlling stake. SBI Group will hold 26% and Money Forward 14%, reflecting the existing shareholder relationship Money Forward already holds in Mesh. The joint venture’s stated business purpose is the expansion of crypto-asset service provider (CASP) activity in Japan.

The three parties have identified four initial business areas for the venture to assess. These are: account connectivity and digital asset transfers between exchanges, wallets and other services; streamlined procedures for buying, transferring and using digital assets; payment solutions using crypto assets and stablecoins; and infrastructure services enabling tokenised assets and digital payments for financial institutions. The release characterises current workflows as fragmented, with users forced to navigate multiple platforms with inconsistent connectivity.

Mesh’s core product is an API layer that connects crypto asset exchanges, wallets and payment platforms. The company says it already has integrations across numerous services globally. The joint venture is designed to bring that connectivity infrastructure to Japan using SBI Group’s domestic regulatory expertise and financial services relationships, while Money Forward contributes management support and its existing stake in Mesh.

Over a longer horizon, the venture plans to consider expansion into stablecoin connectivity and tokenised asset payment rails, which the companies framed as building interoperability between digital assets, stablecoins, tokenised assets and fiat currency.

Japan is one of the few major economies with a mature, purpose-built regulatory framework for crypto asset service providers, administered by the Financial Services Agency (FSA) . The country has operated a crypto exchange registration regime since 2017 and has continued to refine its rules around stablecoins and payment tokens, including amendments that came into force in 2023 establishing a distinct legal category for electronic payment instruments.


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