Japan's LDP Approves AI + On-Chain Finance National Strategy
Japan's ruling party, the Liberal Democratic Party (LDP), officially passed the "Next Generation AI and On-Chain Finance Concept" policy proposal on May 19, drafted by a project team led by lawmaker Seiji Kihara.
The core of the proposal is to utilize AI and blockchain to build a new generation financial system that supports 24/7 automated agent business activities, achieving integration of transactions, settlements, and financing; it also promotes tokenized deposits, yen stablecoins, and tokenization of deposits in Bank of Japan accounts, while supporting the three major banks in jointly issuing stablecoins.
Japanese financial institutions and blockchain projects are accelerating their layout in AI + on-chain finance, with the government guiding public and private sector investments in infrastructure through policy. Traditional banks and stablecoin issuers benefit, while purely centralized financial models face short-term pressure, with funds rapidly shifting from traditional finance to AI-driven on-chain infrastructure.
Source: Public Information
ABAB AI Insight
The LDP's proposal continues Japan's proactive stance on Web3 and stablecoins since 2024, drafted by Seiji Kihara's team, focusing on combining AI agent business activities with blockchain. Japan has previously promoted pilot projects for bank stablecoins, and this further elevates it to a national financial strategy direction.
In terms of capital pathways, the Japanese government requires the Financial Services Agency (FSA) to develop a roadmap for the next five years, encouraging public and private sectors to jointly invest in AI and blockchain infrastructure, while also supporting the three major banks' stablecoin projects. The motivation is to seize the dominance of next-generation financial infrastructure, transforming Japan from a traditional financial powerhouse to a leader in AI + on-chain finance.
Similar to how Singapore and the UAE rapidly laid out on-chain finance through policy, and the EU's MiCA regulations promote stablecoin development, Japan is currently positioning itself as a leader in Asian AI + blockchain financial policy, driving the industry from regulatory observation to systematic construction driven by national strategy.
Structural judgment: Essentially a regulatory change. The demand for 24/7 AI agents combined with the programmability of blockchain forces traditional financial rules to evolve towards on-chain settlements and tokenized deposits, with the mechanism being policy actively guiding public and private capital into infrastructure, thereby shifting pricing power from traditional bank intermediaries to AI + blockchain infrastructure platforms.
ABAB News · Cognitive Law
Policy precedes, infrastructure follows.
AI needs 24/7, finance needs to go on-chain.
The deeper the tokenization, the stronger the national competitiveness.