Backpack inks partnership with Japan’s Minna Bank to bring yen banking into its crypto platform Crypto exchange Backpack has struck a cooperation deal with Minna Bank as it builds out a Japan-facing trading platform, aiming to embed traditional banking rails and explore on-chain finance features for Japanese customers. What’s agreed - Minna Bank — the digital-banking arm of Fukuoka Financial Group — and Trek Labs Japan (Backpack’s local subsidiary) signed the agreement announced on November 12. - The initial, practical outcome would be enabling Backpack users to deposit and withdraw Japanese yen through Minna Bank’s systems, provided Trek Labs Japan completes registration as a cryptocurrency exchange operator in Japan. - The integration will use Minna Bank’s Banking-as-a-Service (BaaS) infrastructure, which lets banks embed core financial services into third-party apps. Beyond basic deposits: tokenized deposits and app integration - The firms are also exploring deeper collaboration, including tokenized deposits — digital representations of bank deposits that remain claims on the issuing bank but can operate inside blockchain-based systems. - Another proposal under discussion would connect Backpack’s investment and trading services with Minna Bank’s mobile banking app, potentially giving the bank’s customers direct access to crypto platform services from their existing banking interface. Why this matters - For Backpack, using Minna’s BaaS would allow the exchange to offer familiar yen banking features alongside crypto trading, smoothing fiat on/off ramps and improving the user experience in a regulated market. - For Minna Bank, the deal accelerates its push into Web3 payments and tokenization, building on earlier experiments with crypto and stablecoin services. Context in Japan’s evolving crypto landscape - Minna Bank has pursued similar collaborations: in June it signed with Singapore’s Slash Vision to develop stablecoin payment services that included yen deposits/withdrawals via Slash’s app and planned conversion paths between tokenized deposits and stablecoins such as USDC. - Trek Labs Japan, established in April 2023 and based in Tokyo’s Shinjuku district, is preparing to register as a crypto exchange operator — a mandatory step before offering domestic trading services. - Backpack’s parent has been expanding in regulated markets; notably, the group acquired FTX EU (the former European arm of the bankrupt FTX) in January 2025 following regulator approvals. - Japan’s regulator, the Financial Services Agency (FSA), has been updating rules and prioritizing on-chain finance in its 2026 policy program, covering blockchain-based payments, securities settlement, tokenization and cross-border transfers. In August, Nomura-backed Laser Digital became the first newly registered crypto exchange service provider in roughly four years. Next steps - The current agreement frames a potential partnership; both companies say they will finalize and disclose further details as discussions advance and as Trek Labs Japan secures the required exchange registration. Bottom line: This partnership is another sign that major Japanese banks and fintechs are experimenting with ways to marry traditional banking infrastructure and compliance with blockchain-native products — and it could materially improve fiat access for crypto users in Japan if regulators sign off. Read more AI-generated news on: https://app.chaingpt.org/news