In this fourth installment of our “Unlocking Japan for Startups” series, we move from theory to practice with a deep dive into the partnership between Fazz (and its stablecoin arm, StraitsX) and MUFG Innovation Partners (MUIP). This case study illustrates how a global fintech group building from Southeast Asia is successfully navigating the complexities of Japanese corporate engagement to unlock new opportunities globally.

From YC to Global Fintech: A Case Study in Corporate-Startup Partnership

The Players:

• Fazz: A Southeast Asian fintech powerhouse born from the merger of Indonesia’s PayFazz and Singapore’s Xfers. Both Y Combinator alumni, they share a mission of driving financial inclusion across the region.
• StraitsX: The digital asset and stablecoin arm of Fazz, providing regulated, borderless payment infrastructure.
• MUIP: The corporate venture capital arm of MUFG, Japan’s largest bank.

The Challenge: Bridging Two Worlds

For Fazz and StraitsX, the challenge was twofold:

1. Financial Inclusion at Scale: How to bring modern financial services to the 290 million unbanked individuals in Southeast Asia.
2. Global Expansion: How to expand their innovative payment solutions, including stablecoins, into new markets like Japan.

The Partnership: A Three-Act Play

The Fazz-MUIP partnership unfolded in three distinct acts, each demonstrating a deeper level of collaboration and trust:

Act 1: The Strategic Investment

MUIP’s initial investment in Fazz was more than just capital. It was a strategic bet on a shared vision of financial inclusion. For Fazz, it provided access to MUFG’s extensive network and a credible partner in the highly regulated financial industry. The partnership was solidified when Fazz raised its $100 million Series C in September 2022, with participation from MUIP alongside other global investors like Tiger Global and DST Global [1]. This followed the 2021 merger of PayFazz and Xfers, which formed the Fazz Financial Group [2].

“We’re a neobank offering banking services, but we don’t need to become a bank. Danamon (MUFG’s subsidiary), through MUIP, gives us access to products we lack via banking partners.” – Hendra Kwik, Fazz Group CEO

Act 2: The Operational Collaboration

With MUIP’s support, Fazz and StraitsX began to operationalize their partnership. This included:

• Accelerating Payments: Leveraging BI Fast (Indonesia’s real-time payment system) and QRIS (unified QR payments) with Bank Danamon, MUFG’s local subsidiary. This collaboration enabled Fazz to achieve $1 million in QRIS transactions within three months of launch [3].
• Expanding Networks: Gaining access to MUFG’s network in Thailand, the Philippines, and Japan. This was crucial for Fazz’s agent network, which has over 250,000 agents serving 10 million customers in rural Indonesia [4].

“Speed and being a first mover are critical in tech and startups. We need bank partners because we don’t own a bank. MUIP opens those networks, which is vital for our strategy.” – Hendra Kwik

Act 3: The Future of Finance

The partnership is now focused on the future of finance, with a particular emphasis on stablecoins and cross-border payments. StraitsX, having launched the Singapore dollar-backed stablecoin (XSGD) in 2020 [5] and a USD-pegged stablecoin (XUSD) in 2024, is now looking to Japan.

“Based on our track record in Singapore, we see great potential to issue and operationalize stablecoins in Japan with MUFG. We’ve run this business for five years, so we deeply understand revenue structures, common pitfalls, and key focus areas.” – Tianwei Liu, StraitsX Co-Founder & CEO [6]

Key Learnings for Founders:

The Fazz-MUIP partnership offers an example for founders looking to engage with Japanese corporates:

1. Find a Strategic Partner, Not Just an Investor: Look for a partner who shares your vision and can provide more than just capital. MUIP’s value was its network, its regulatory expertise, and its long-term commitment. (See Part 3 for more on corporate alignment).
2. Demonstrate Real-World Impact: Fazz gained the trust of regulators and partners by demonstrating the tangible benefits of its services to society. Focus on solving real problems for real people.
3. Embrace the Long Game: Building trust with Japanese corporates takes time. Be patient, be persistent, and focus on building long-term relationships. (See Part 2 for more on relationship building).
4. Leverage Your Partner’s Strengths: Fazz didn’t try to become a bank. Instead, it leveraged MUFG’s banking infrastructure to accelerate its own growth. Understand what your corporate partner does best and find ways to complement their strengths.

The Road Ahead: A New Era of Collaboration

The Fazz-MUIP partnership is a testament to the power of corporate-startup collaboration. As Japan continues to open its markets to foreign innovation, the opportunities for similar partnerships will only grow. By understanding the nuances of Japanese corporate culture and finding the right strategic partners, founders can unlock the full potential of the world’s third-largest economy. (See Part 1 for the foundational principles of market entry).

References

[1] TechCrunch. (2022, September 13). Southeast Asian fintech Fazz raises $100M Series C to serve businesses of all sizes. https://techcrunch.com/2022/09/13/southeast-asian-fintech-fazz-raises-100m-series-c-to-serve-businesses-of-all-sizes/

[2] TechCrunch. (2021, March 3). Payfazz invests $30M in Xfers as the two Southeast Asian fintechs form Fazz Financial Group. https://techcrunch.com/2021/03/03/payfazz-invests-30m-in-xfers-as-the-two-southeast-asian-fintechs-form-fazz-financial-group/

[3] MUFG Innovation Partners. (2025, December 15). Fazz’s challenge: driving financial inclusion in the villages through digital innovation. https://www.ip.mufg.jp/en/insights/n-fj3giaj5c0/

[4] TechCrunch. (2020, July 6). Payfazz gets $53 million to give more Indonesians access to financial services. https://techcrunch.com/2020/07/06/payfazz-gets-53-million-to-give-more-indonesians-access-to-financial-services/

[5] StraitsX. (2020, October 5). Introducing XSGD — the Singapore Dollar-backed and Travel Rule¹ compliant stablecoin. https://www.straitsx.com/blog-post/introducing-xsgd-the-singapore-dollar-backed-and-travel-rule1-compliant-stablecoin[6] MUFG Innovation Partners. (2025, December 26). StraitsX’s vision of the future of financial infrastructure: Transforming international payments with fully reserved, fiat-backed stablecoins. https://www.ip.mufg.jp/en/insights/cb-8cc2wcxz/