Mercari, Japan’s e-commerce titan, has seen an extraordinary surge in its crypto exchange business, with its Melcoin arm reporting a ninefold increase in trading revenues over the past year. The company’s Q3 financials, published on its official website, reveal that Melcoin generated 271 million yen (approximately $1.8 million) in revenue from July to September 2024. This marks a massive jump from the 30 million yen ($195,000) earned during the same period in the previous year.
Melcoin's Rapid Expansion
Launched in 2021 as a fully owned subsidiary, Melcoin initially offered Bitcoin (BTC) trading services starting in March 2023. This latest revenue spike highlights the growing popularity of the exchange, which has quickly expanded its offerings. In May 2024, Melcoin added support for Ethereum (ETH), and the platform is expected to further diversify by introducing NFT-related services in the near future.
The platform has also integrated Mercari’s loyalty points system, enabling users to redeem points for Bitcoin and Ethereum on the Melcoin exchange. This integration likely plays a significant role in the uptick in user engagement, as it offers a seamless bridge between Mercari’s popular e-commerce platform and its expanding crypto services.
A Growing Crypto Ecosystem
Mercari’s increasing focus on cryptocurrency is evident in its broader fintech operations, which include both the Melcoin exchange and its integration of Bitcoin payments on its main platform. In February 2024, Mercari introduced a feature allowing users to pay for goods and services with Bitcoin. The feature was a hit, with the company reporting 100,000 BTC transactions within the first four weeks of its launch.
Mercari’s commitment to expanding the use cases for crypto is clear. The company has indicated plans to continue developing its cryptocurrency offerings, with an eye on growing its crypto ecosystem both within and outside of Japan. The company's fintech business posted over $58 million in sales revenue during Q3 2024, a 37% increase compared to the same period in 2023, signaling the increasing importance of crypto within its broader business strategy.
Plans for Real-World Asset (RWA) Trading
Mercari is not stopping at cryptocurrency trading. The company has also announced plans to introduce real-world asset (RWA) trading services via Melcoin. Although the specifics remain under wraps, the CEO of Melcoin hinted that RWA services could include trading cards and artwork. These types of assets could attract collectors and investors who are increasingly interested in tokenizing real-world items and using blockchain technology to trade them.
Mercari is expected to make an official announcement about its RWA plans in the coming weeks, which could further cement its position as a leading player in the Japanese crypto ecosystem.
Mercari vs. Traditional Exchanges
Mercari’s crypto push has positioned it as a strong alternative to traditional crypto exchanges in Japan. A survey conducted late last year revealed that Japanese crypto “newbies” were more likely to use Melcoin or Rakuten Wallet than established exchanges. Rakuten Wallet, operated by Rakuten (another major e-commerce player in Japan), is one of Melcoin’s main competitors in the space.
This trend suggests that new crypto users in Japan are gravitating toward platforms that combine ease of use with additional services. With its integration of loyalty points, its ability to offer Bitcoin payments on its main platform, and its future plans for NFTs and RWAs, Mercari is rapidly gaining traction in the crypto sector.
Looking Ahead: Mercari’s Crypto Ambitions
The explosive growth of Melcoin's revenue is just the beginning for Mercari. As the company expands its crypto offerings and integrates more blockchain-based features into its platform, it is likely to continue its push into the digital asset space. The firm’s innovative approach to blending e-commerce, fintech, and cryptocurrency positions it well to capitalize on the increasing demand for digital assets in Japan and beyond.
With an official announcement regarding RWAs looming, Mercari’s crypto ambitions are poised to deepen. As the firm continues to build its ecosystem of services and tap into emerging trends, it could become a major player in both the Japanese and global crypto markets. For now, its impressive growth trajectory in Melcoin signals that the firm’s crypto drive is paying off.
November 2024, Cryptoniteuae