The origins of the Iron Monk are unknown. He is an agent of the Hand, and thus would almost certainly be of somewhat magical origins, but whether he is a human mutate, a demon, a magical construct, or something else altogether is uncertain.
The Iron Monk teleported into the holding cells of the Tokyo Metropolitan police, Shinjuku district station, where Wolverine and the Pale Flower were being held. The priest calmed the guards by telling them he was there to chant a few sutras to ensure Wolverine's safe passage to the pure land. He then knocked the guards out and ripped the iron door off of Wolverine's cell. Wolverine was surprised when a rake of his claws failed to affect the Monk, who told him he could not be slain by any mortal hand or blade. Pale Flower's cell was shattered as well, but no weapon she or Wolverine used against the Monk did any good.
Things looked grim for our heroes, when Yohei, the "button man for the Yashida Clan," who owed a debt to Wolverine showed up. Yohei gave Wolvie the Honor Sword of Clan Yashida. The Iron Monk stood there mocking Logan and was skewered by the Honor Sword, which was forged out of meteorite iron by a demon.