SBI Holdings, Mesh Connect and Money Forward have signed a basic agreement to establish a joint venture in Japan targeting the fragmented digital asset connectivity market. The entity, to be named Mesh SBI Money Forward Network KK, is planned for launch in 2026 and will focus primarily on the Japanese market, subject to definitive agreements, internal approvals and engagement with relevant regulatory authorities.
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.
What the joint venture will do
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.
Market and regulatory context
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. That regime makes Japan a relatively attractive jurisdiction for structured digital asset infrastructure plays, because the compliance path is defined even if it is demanding.
SBI Holdings is a substantial presence in Japanese financial services and has maintained a long-standing strategic interest in digital assets, including through its association with Ripple and its own crypto exchange operations. Money Forward is a well-established Japanese financial software business focused on accounting and personal finance tools, giving the venture a route into the SME and consumer segments where digital asset adoption is still nascent.
The competitive context in Japan includes domestic exchange operators and several global platforms with FSA registration. The joint venture’s differentiator, if the business model proves out, would be the connectivity layer rather than custody or exchange services, which positions it as infrastructure for the existing licensed players rather than a direct competitor to them. Whether Japanese exchange operators and wallet providers are willing to connect via a third-party API layer will be the central commercial question. The presence of SBI as a shareholder and a known regulatory actor may ease those conversations.
AI level 1 of 5: written by Darlyn Ho; AI helped with tone, structure or wording; edited and signed off by Mark Walker, Editorial Director. What the levels mean