Japan’s ruling Liberal Democratic Party has advanced a new policy proposal focused on AI, blockchain finance, and tokenized payments.
次世代AI・オンチェーン金融構想PTの提言が党プロセスを経て最終決定しましたので、ご報告します。… pic.twitter.com/Z9vx6N6rt9
— 木原 誠二 (@kihara_seiji) May 19, 2026
Japan explores tokenized deposits and 24/7 digital payments
The document, titled “Next-generation AI & Onchain Finance Concept,” supports the development of tokenized deposits, yen stablecoins, and programmable settlement systems that can operate around the clock.
The proposal was prepared by an LDP project team led by Seiji Kihara and officially approved through the party process on May 19.
The plan argues that blockchain and AI could reshape financial systems by enabling payments, lending, contracts, and logistics to operate continuously, without traditional banking hours.
Stablecoin rules and digital yen discussions move forward
A major part of the proposal focuses on stablecoins and how they should be treated under Japanese law. The document calls for clearer legal guidance on whether stablecoins can eventually be used for salaries, tax payments, and corporate capital contributions.
It also asks Japanese financial institutions to move forward with tokenized deposit products while reviewing key legal and operational issues within the year.
The proposal further supports tokenizing Bank of Japan current account deposits and expanding discussions around wholesale central bank digital currency systems.
Japan’s Payment Innovation Project was also referenced in the document. Under that initiative, three major Japanese banks are already studying joint stablecoin issuance for commercial use cases, including overseas corporate payments and treasury management.
Japan aims to build a wider Asian on-chain finance system
Beyond domestic policy, the proposal positions Japan as a possible regional leader in on-chain finance infrastructure across Asia.
The document calls for a new regional policy framework focused on real-world assets, cross-border payment rules, KYC standards, audits, and anti-money laundering requirements.
It also highlights that 40% to 50% of Japan’s trade settlements with Asian countries are already yen-based, creating a foundation for wider regional stablecoin and tokenized payment systems. The proposal suggests Japan sees blockchain finance not only as a technology issue, but also as part of its long-term economic and trade strategy.
Meanwhile, Japan’s digital yen stablecoin JPYC will officially launch on the Unifi platform on May 22, marking another step in the country’s growing stablecoin market.
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