Japan’s Liberal Democratic Party (LDP) has unveiled an ambitious national strategy aimed at transforming the country into a global hub for AI-driven on-chain finance, stablecoins, and programmable payments.
The recommendations, released on May 19, 2026, by the LDP’s Digital Society Promotion Headquarters and its Next-Generation AI and On-Chain Finance Initiative, describe a future economy powered by artificial intelligence, blockchain infrastructure, and automated digital payments operating around the clock.
The proposal positions AI and blockchain as the foundation of a new economic model centered on “automation, integration, and 24/7/365 operation,” where AI agents can autonomously execute transactions, coordinate supply chains, settle payments, and manage financial activity without human intervention.
Stablecoins and tokenized deposits become core infrastructure
A major focus of the roadmap is the expansion of stablecoins (SC) and tokenized deposits (TD) as critical components of Japan’s future financial system.
The LDP explicitly warned that Japan risks falling behind global competitors if it fails to modernize its payment infrastructure while dollar-backed stablecoins such as USDT and USDC continue gaining adoption worldwide.
According to the proposal, global stablecoin circulation has already expanded to roughly ¥45 trillion (~$290 billion), driven largely by U.S. dollar-denominated tokens.
The report called for clearer stablecoin regulations, expansion of tokenized deposits, interoperability between yen and foreign stablecoins, and further exploration of wholesale CBDC and tokenized Bank of Japan settlement systems, as Japan pushes toward AI-driven digital finance. The proposal stated that future commercial transactions would become “quickly, frequently, and globally” executed through AI-powered commerce.
EJPY stablecoin launch adds momentum
The initiative comes as Japan’s stablecoin ecosystem continues expanding. Earlier this month, the Japan Blockchain Foundation announced plans to launch the EJPY stablecoin on both Ethereum and Japan Open Chain.
The yen-pegged stablecoin is expected to support payments, remittances, and broader Web3 applications as Japan accelerates efforts to build domestic blockchain infrastructure.
The launch reflects growing momentum behind yen-denominated digital payment systems as policymakers push for greater financial programmability and on-chain settlement capabilities.
The era of agentic commerce
The LDP report outlines multiple scenarios where AI agents autonomously manage financial and commercial activity. Because blockchain technology offers natural tamper-resistance, programmability, and continuous uptime, it is uniquely suited to handle machine-to-machine commerce.
The proposal envisions AI-powered systems automatically purchasing groceries, processing international product orders, handling customs procedures, and settling supplier payments instantly using blockchain-based stablecoins.
The LDP argued that blockchain technology is particularly suited for AI systems due to its “tamper resistance, programmability, and 24/7 operational capability.”
The proposal also envisions tokenized real-world assets, automated trade finance, and instant lending systems powered by AI-analyzed transaction data and on-chain collateral.
Public-private partnerships to drive adoption
The report positions finance as Japan’s “18th growth investment area,” calling for closer collaboration between regulators, banks, and technology firms to develop programmable financial infrastructure.
Several major financial institutions and blockchain firms have already participated in discussions tied to the initiative, including Mitsubishi UFJ Bank, Sumitomo Mitsui Banking Corporation, Mizuho Bank, JPYC Corporation, Datachain, and JPMorgan Chase.
The proposal also highlighted ongoing Payment Advancement Project (PIP) initiatives exploring stablecoin issuance by Japan’s megabanks, blockchain-based securities settlement, and tokenized deposit transfers between banks.
The LDP warned that failure to build domestic on-chain payment systems could expose Japan to economic security risks and dependence on foreign-controlled infrastructure.
The report additionally called for the creation of an “AI/On-Chain Finance Asia Policy Dialogue Framework” aimed at coordinating blockchain standards, interoperability, and stablecoin regulation across Asian markets.
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