Fintech Powerhouse: SBI, Mesh Connect & Money Forward Forge Digital-Asset Joint Venture in Japan

SBI Holdings, Mesh Connect, and Money Forward have reached a foundational agreement to establish a joint venture in Japan. This new entity, planned for launch in 2026 and to be named Mesh SBI Money Forward Network KK, aims to address the fragmented digital asset connectivity market, focusing primarily on the Japanese market.

The ownership structure of the joint venture will see California-headquartered API connectivity provider, Mesh Connect, holding a 60% controlling stake. SBI Group will possess 26%, while Money Forward will hold 14%, a stake that reflects its existing shareholder relationship with Mesh. The core business purpose of this collaboration is the expansion of crypto-asset service provider (CASP) activity within Japan.

The three participating companies have outlined four initial business areas for the venture. These include facilitating account connectivity and digital asset transfers across exchanges, wallets, and various services; streamlining processes for buying, transferring, and utilizing digital assets; developing payment solutions leveraging crypto assets and stablecoins; and providing infrastructure services to enable tokenized assets and digital payments for financial institutions. The current digital asset landscape is characterized by fragmented workflows, forcing users to navigate multiple platforms with inconsistent connectivity, a problem the joint venture seeks to resolve.

Mesh's primary offering is an API layer designed to connect crypto asset exchanges, wallets, and payment platforms, a solution it already implements globally. The new joint venture aims to deploy this connectivity infrastructure in Japan, benefiting from SBI Group's extensive domestic regulatory expertise and financial services relationships. Money Forward will contribute management support and leverage its existing stake in Mesh to support the venture. Looking further ahead, the joint venture intends to explore expansion into stablecoin connectivity and tokenized asset payment rails, fostering greater interoperability between digital assets, stablecoins, tokenized assets, and fiat currency.

Japan presents a favorable regulatory environment, being one of the few major economies with a mature, purpose-built framework for crypto asset service providers, overseen by the Financial Services Agency (FSA). The country has maintained a crypto exchange registration regime since 2017 and has continuously refined its regulations, including amendments in 2023 that established a distinct legal category for electronic payment instruments. This defined yet demanding compliance path makes Japan an attractive jurisdiction for structured digital asset infrastructure initiatives.

SBI Holdings holds a significant position in Japanese financial services and has demonstrated a long-standing strategic interest in digital assets, including its affiliations with Ripple and its own crypto exchange operations. Money Forward is a well-established Japanese financial software company specializing in accounting and personal finance tools, providing the venture with a direct route into the nascent SME and consumer digital asset adoption segments.

While Japan's competitive landscape includes domestic exchange operators and global platforms with FSA registration, the joint venture aims to differentiate itself through its connectivity layer rather than competing directly in custody or exchange services. This positions it as an infrastructure provider for existing licensed players. A critical commercial challenge will be securing the willingness of Japanese exchange operators and wallet providers to integrate via a third-party API layer, though SBI's involvement as a shareholder and known regulatory actor is expected to facilitate these discussions.