Liberal Democratic Party Approves AI Blockchain Finance Proposal: Yen Stablecoin, Central Bank Deposit Tokenization, Three Major Banks to Launch Next March

Japan's ruling party, the Liberal Democratic Party (LDP), officially approved the policy proposal for the "Next-Generation AI and On-Chain Finance Concept," planning to build 24/7 automated financial infrastructure centered around AI and blockchain, preparing for the "Agentic Commerce" era. The proposal explicitly supports the Japanese yen stablecoin, tokenized deposits, and the tokenization of Japan's central bank current account deposits, as well as supporting a joint stablecoin issuance plan by the three major banks.
(Background: The world's first Japanese yen stablecoin JPYC launched! Approved by Japan's Financial Services Agency, backed by Japanese government bonds, supporting multi-chain deployment)
(Additional background: Japan's Financial Services Agency is reforming cryptocurrency taxation: lowering to 20% and allowing loss carryforward, promoting domestic crypto ETFs and the Japanese yen stablecoin)

Table of Contents

Toggle

* Dual-track development of Japanese yen stablecoin and central bank deposit tokenization
* Five-year roadmap and Asian cooperation
* Frequently Asked Questions

The Liberal Democratic Party's Digital Society Promotion Headquarters' "Next-Generation AI and On-Chain Finance Project Team" (PT) officially submitted a policy proposal on May 12. The team is led by former Cabinet Secretariat Deputy Chief Seiji Kihara, who is also the current chairman of the LDP Blockchain Promotion Parliamentary League.

The core of the proposal is that when AI agents can autonomously select goods and services and automatically execute transactions, the financial system must keep pace. Blockchain's three features—"verifiable, programmable, immutable"—are highly compatible with AI-driven automation in finance. Therefore, the proposal advocates creating a 24/7 continuous financial infrastructure supporting "Agentic Commerce."

### Dual-track development of Japanese yen stablecoin and central bank deposit tokenization

In terms of concrete pathways, the proposal lists tokenized deposits and stablecoins as two main pillars.

Regarding stablecoins, the proposal supports a joint stablecoin issuance plan by Japan's three major banks, including Mitsubishi UFJ (MUFG), Sumitomo Mitsui (SMBC), and Mizuho.

In March this year, the three banks launched a proof of concept (PoC) on MUFG's Progmat platform, testing Japanese yen and US dollar-pegged stablecoins simultaneously, and obtained the first certification from Japan's Financial Services Agency under the "Payment Innovation Plan." The proposal calls for cooperation among relevant ministries to promote stablecoins for salary payments and tax payments, aiming to go live and operate officially by March next year.

For tokenized deposits, the proposal further suggests promoting the tokenization of Japan's central bank current account deposits, essentially pointing toward wholesale CBDC (Central Bank Digital Currency), requiring relevant issues to be organized and made public by the end of the year. Japan Post Bank has also announced plans to launch DCJPY tokenized yen deposits within the 2026 fiscal year.

### Five-year roadmap and Asian cooperation

Beyond financial infrastructure, the proposal also calls for establishing a national investment roadmap for AI and blockchain over the next five years, explicitly requiring the creation of public-private cooperation platforms with Asian countries to promote cross-border collaboration in AI and on-chain finance.

The proposal also includes strategies to promote asset management industry development through on-chain tokenization, covering real assets such as accounts receivable and real estate (RWA), as well as improving legal frameworks for systemic risk management.

Nikkei reports that the LDP had already proposed AI policy recommendations on April 23, suggesting the development of systems for financial institutions to adopt "Agent AI." This on-chain finance proposal further integrates AI and blockchain into a comprehensive national-level financial transformation blueprint.

### Frequently Asked Questions

What is Agentic Commerce?

Agentic Commerce refers to a business model where AI agents autonomously select goods, execute transactions, and settle payments. The Japanese LDP believes that blockchain's verifiable and programmable features are highly compatible with this, hence proposing to build a 24/7 continuous on-chain financial infrastructure.

How is the progress of Japan's three major banks' stablecoin plans?

MUFG, SMBC, and Mizuho launched a proof of concept on March 5, 2026, on the Progmat platform, testing Japanese yen and US dollar stablecoins simultaneously, and obtained initial certification from the Financial Services Agency. The LDP proposal aims for full operation by next March, with a customer base of over 300k enterprises across the three banks.