Japan’s Financial Services Agency has placed blockchain-based, on-chain finance among its main policy priorities for 2026, setting out a broad push to apply the technology across payments, securities settlement, tokenization, and cross-border transfers.
The regulator plans to create an “On-chain Finance Forum for the AI Era” to examine technical, regulatory, and supervisory questions. At the same time, it wants more testing by both public and private-sector participants, with user protection and financial system stability framed as core conditions for wider adoption.
A wider role for blockchain in financial plumbing
The FSA’s agenda points to blockchain being used alongside existing financial infrastructure rather than as a standalone replacement. In Japan, the policy direction covers on-chain payments and tokenization, while also linking the effort to broader government strategies aimed at investment in selected industries and support for corporate restructuring.
The agency also sees cross-border payments as a key area for expansion. Discussions are expected to involve participants across Asia, and Japan Fintech Week is set to include an Asia Day in 2027 to advance work on on-chain finance for international transfers.
Settlement and tokenization projects are already in motion
Parts of the agenda build on projects that are already underway. MUFG and partner banks have been testing Japanese government bond repo transactions on the Canton Network, with the goal of automating processing and enabling 24-hour settlement.
The policy backdrop also includes preparations for broader asset tokenization. Regulators are getting ready for more tokenized products, while work continues around speeding up securities settlement. At present, domestic stocks in Japan settle on a T+2 basis and government bonds settle the next day, with early plans for further acceleration potentially taking shape in the 2030s.
Private-sector activity is expanding
The FSA’s policy push comes as private companies continue to launch blockchain-related financial projects. Examples cited in the current landscape include tokenized Japanese equity funds and cooperation between SBI Holdings and the Solana Foundation around stablecoins, tokenized assets, and blockchain services aimed at institutions.
That mix of regulatory planning and market experimentation suggests Japan is trying to build out practical use cases while the rules and supervisory approach continue to develop. The emphasis from the FSA remains on testing that does not compromise customer safeguards or broader system resilience.
Digital asset oversight and the next steps
Alongside its adoption plans, Japan has been developing a more formal regulatory structure for digital assets. The framework includes treating cryptocurrencies as financial products and setting up a dedicated Cryptocurrency and Stablecoin Division to oversee digital assets and planning around payments.
AI is also part of the discussion. The proposed forum is expected to consider how AI agents could improve services and supervision as on-chain finance expands, while keeping risk controls in place. The next confirmed step is the FSA’s planned forum, which is intended to bring technical, policy, and supervisory issues into a single venue as Japan shapes its 2026 approach.
Source: crypto.news