Japan’s LDP Approves AI On-Chain Finance Plan as Three Megabanks Target 2027 Stablecoin Launch

Japan’s Liberal Democratic Party has approved a “Next-Generation AI and On-Chain Finance Initiative” that calls for combining AI, blockchain, yen stablecoins and tokenized deposits to build round-the-clock automated financial infrastructure. The proposal is significant for the digitalization of Japan’s banking system and could also affect the efficiency of corporate cross-border payments and fund settlement.

Under the latest plan, Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group and Mizuho Financial Group will jointly develop a stablecoin, aiming to begin commercial transactions by the end of March 2027. That is one year later than the March 2026 timetable in the original proposal. The issuance size and value have not been announced.