Japan's LDP Approves "Next-Generation AI and On-Chain Finance Concept" — Three-Megabank Joint Stablecoin Targets March 2027 Launch, Building Financial Infrastructure for the Agentic Commerce Era Becomes National Strategy

English Section

[Date] May 19, 2026 (Approved by LDP Policy Research Council)

[Title] Japan's LDP Approves "Next-Generation AI and On-Chain Finance Concept" — Three-Megabank Joint Stablecoin Targets March 2027 Launch, Building Financial Infrastructure for the Agentic Commerce Era Becomes National Strategy

[Summary] On May 19, the Liberal Democratic Party's Policy Research Council approved a policy recommendation compiled by the "Next-Generation AI and On-Chain Finance Concept Project Team (PT)" under the Digital Society Promotion Headquarters. The proposal designates tokenized deposits, yen-pegged stablecoins, and tokenization of real-world assets (RWA) as priority areas — the financial infrastructure underpinning 24/7 autonomous economic activity by AI agents. The three-megabank joint stablecoin targets operational launch by March 2027, and the Financial Services Agency (FSA) is asked to formulate a five-year roadmap.

[Main Body]

Overview and Political Context

On May 19, 2026, the LDP Policy Research Council approved a recommendation from the "Next-Generation AI and On-Chain Finance Concept PT" of the Digital Society Promotion Headquarters, led by Lower House member Seiji Kihara (Chair), Masaaki Taira (Deputy Chair), and Hideki Murai (Secretary-General). Both Kihara and Murai are former Ministry of Finance officials, lending significant weight to the proposal's potential influence on fiscal policy. While the recommendation is at the policy-proposal stage and does not constitute legislative change or government decision, Taira has previously stated that "once a PT is formed, it almost always becomes national policy," making translation into government direction and institutional design the focus going forward.

Designing Financial Infrastructure for the Agentic Commerce Era

The recommendation's foundational thesis is the redesign of financial infrastructure for the "Agentic Commerce" era — autonomous economic activity driven by AI agents making and executing decisions. The proposal envisions a future where economic activities previously conducted individually become interconnected and automated 24/7. As the foundation ensuring the reliability of underlying transactions, settlements, contracts, and fund transfers, the proposal identifies blockchain's properties of "tamper resistance," "referenceability," and "programmability" as highly complementary to AI. The framing "AI cannot hold bank accounts, so stablecoins are needed" sits at the conceptual core.

Priority Areas and Concrete Timeline

The proposal centers on three pillars. First, on tokenized deposits (TD), the proposal calls for publishing — by year-end — an organized analysis covering Bank of Japan current account tokenization and wholesale CBDC. Second, on yen-pegged stablecoins (SC), it directs cross-ministerial work to clarify legal positioning for use cases including payroll and tax payments, and sets a target of operational launch for the three-megabank joint stablecoin by March 2027. Participants include MUFG Bank, SMBC, Mizuho Bank, plus Mitsubishi Corporation, MUFG Trust Bank, and Progmat, employing a trust-based scheme. Initial use cases focus on cross-border settlement between Mitsubishi Corporation's domestic and overseas entities. Third, the tokenization of RWA is positioned as a priority area. Additionally, the proposal includes an "AI and On-Chain Finance Asia Policy Dialogue Framework (tentative)" and a "Global SC Corridor Concept (tentative)" using yen-pegged stablecoins, with the FSA requested to formulate a five-year roadmap. Response to quantum computing risks to cryptographic security is also flagged as a key challenge.

[Business Development Insights]

1. "AI Agents × Stablecoins" Become the Core Battleground of Next-Generation Payment Protocols: The proposal's framing — that "AI cannot hold bank accounts" — establishes stablecoins as essential infrastructure for the AI agent economy. Machine-to-machine (M2M) payments, API-linked automated billing, and agent-to-agent swaps are emerging as new payment use cases. For providers of payment protocol design, agent identity management, and automated compliance, this represents a massive opportunity area.
2. The Three-Megabank Joint Stablecoin Will Redefine B2B Settlement in Japan: The three megabanks collectively serve over 300,000 corporate clients. The design — built on Progmat infrastructure, employing a trust-based scheme, and starting from Mitsubishi Corporation's cross-border settlements — has the potential to fundamentally restructure Japanese corporates' trade finance, cash management systems (CMS), and supply chain payments. For CFOs and treasury teams in trading houses, manufacturers, and logistics firms, the moment to redesign B2B settlement flows on tokenization-first assumptions has arrived.
3. "Asian Financial Corridor" Construction Becomes Tailwind for Japanese Web3 Companies' Overseas Expansion: The "Asia Policy Dialogue Framework" and "Global SC Corridor Concept" included in the proposal envision Japan-led cross-border settlement infrastructure. This connects significantly to Japan-Korea stablecoin integration on the Kaia chain and regulatory coordination with Singapore and Hong Kong, providing potential policy backing for Japanese Web3 companies expanding into Asia. Partnership development across ASEAN and East Asia becomes a medium-term strategic priority.

[Sources]

• NewEconomy, "LDP Approves 'Next-Generation AI and On-Chain Finance Concept,' Advancing Three-Megabank Joint Stablecoin and RWA Initiatives" (May 20, 2026) https://www.neweconomy.jp/posts/575026
• LDP Next-Generation AI and On-Chain Finance Concept PT Recommendation (Seiji Kihara Official Site) https://kiharaseiji.com/wp/wp-content/uploads/2026/05/%E6%AC%A1%E4%B8%96%E4%BB%A3AI%E3%82%AA%E3%83%B3%E3%83%81%E3%82%A7%E3%83%BC%E3%83%B3%E9%87%91%E8%9E%8D%E6%A7%8B%E6%83%B3PT%E6%8F%90%E8%A8%80.pdf
• Nikkei, "AI × Finance: Public-Private Platform Creation in Asia — LDP's Draft Recommendation" https://www.nikkei.com/article/DGXZQOUA124H30S6A510C2000000/
• Digital Today, "LDP Approves Next-Generation Financial Recommendation Centered on AI and Blockchain" https://www.digitaltoday.co.kr/jp/view/56735/japans-ldp-approves-plan-for-ai-and-blockchain-based-next-generation-financial-system
• CoinDesk JAPAN, "Three Megabanks to Jointly Issue Yen-Pegged Stablecoin — Nikkei Reports" https://www.coindeskjapan.com/319685/
• Reuters / Newsweek Japan, "Three Megabanks and Others to Jointly Issue and Verify Stablecoin, FSA Provides Support" https://www.newsweekjapan.jp/headlines/business/2025/11/577943.php
• PR TIMES, "Masaaki Taira, Former Digital Minister: 'When a PT is Formed, It Almost Always Becomes National Policy'" https://prtimes.jp/main/html/rd/p/000000036.000087132.html