Megabanks MUFG, SMBC, Mizuho face March 2025 deadline for joint stablecoin pilot. LDP calls for BOJ wholesale CBDC review by year-end. Stablecoin wage use next.
Japan's ruling Liberal Democratic Party has advanced a policy framework that sets a March 2025 deadline for megabanks to issue yen stablecoins and demands the Bank of Japan publish a wholesale CBDC review path by year-end. The proposal moves stablecoin regulation from abstract debate to a calendar with deliverables.
The document, titled “Next-generation AI & Onchain Finance Concept,” was prepared by an LDP project team under Seiji Kihara. It passed the party process on May 19, issued by the Policy Research Council and Digital Society Promotion Headquarters. Kihara said on X that the proposal had reached a final decision.
Kihara said, “It is truly a ‘concept,’ and from here on, we will build it piece by piece.” Follow-up work will decide how the plan moves from policy language into practical steps.
The proposal says Japan should promote tokenized deposits that can use smart contracts to connect payments with trade and logistics. Deposit-taking financial institutions are asked to develop tokenized deposit products and reach a clear view on key issues within the year.
This is not a vague endorsement. The text calls for specific products from licensed banks, not experimental sandbox tokens. If implemented, tokenized deposits would allow programmable settlement for corporate payments, supply chain financing, and cross-border trade.
The LDP also wants clearer legal treatment of stablecoins. The document says Japan should clarify whether stablecoins can be used for wages, tax payments, and company capital contributions. Cross-ministry work on this is expected within the fiscal year.
The read-through is straightforward. Japan already has a stablecoin law that passed in 2023, limiting issuance to banks and trust companies. The new proposal pushes that framework into real economy use cases. If stablecoins become valid for wage payments, demand for yen-backed tokens would rise sharply from both employers and employees.
The LDP plan references Japan’s Payment Innovation Project, where three megabanks are studying joint stablecoin issuance. The proposal says the work should target real use by next March, including overseas cash management for large companies.
The three banks involved are:
Crypto.news previously reported that the three banks are working on yen-backed stablecoin settlement networks, while Japan’s Financial Services Agency has been setting stricter reserve rules for stablecoin issuers. The LDP proposal signals that political backing now aligns with the regulatory direction.
The proposal also supports tokenizing Bank of Japan current account deposits, including possible wholesale CBDC use. It asks the central bank to publish its review path for implementation by year-end 2025.
Governor Kazuo Ueda has already backed blockchain settlement research, including tokenized central bank money and sandbox work linked to current account deposits. The LDP request turns that research into a deadline.
The LDP document calls for an “AI and Onchain Finance Asia Policy Dialogue Framework.” The proposed framework would bring public and private groups together to discuss RWA definitions, audits, KYC, AML, and cross-border rules.
Japan’s ambition is to lead regional standard-setting for onchain finance. The proposal says 40% to 50% of Japan’s trade settlement with Asian countries is already yen-denominated. That gives Japan a natural base for wider regional payment cooperation using stablecoins and tokenized deposits.
For traders tracking the crypto sector, the LDP proposal is a macro catalyst for stablecoin adoption and regulatory clarity in a G7 economy. The direct beneficiaries are the megabanks and infrastructure providers that support tokenization and blockchain settlement.
MUFG already has the highest Alpha Score among the three at 63/100 with a Moderate label, reflecting above-average institutional quality. The stock page is available at MUFG stock page.
Broader sector implications: Clearer rules around stablecoin use in wage and tax payments could drive demand for yen-backed tokens and the exchanges that list them. The proposal also opens a path for tokenized deposit products that compete with stablecoins, creating an institutional onramp for digital assets.
The crypto market analysis page tracks these developments as they unfold.
The LDP proposal is still a concept, as Kihara stressed. Several concrete markers will decide whether the thesis holds.
Confirmation signals include:
Risk factors include:
The clock starts now. Japan has a party proposal with named deadlines. The difference between this and previous policy documents is the specificity: a March date for issuance, a year-end date for the BOJ review, and a clear list of use cases. Execution remains unproven, the direction is set.
Prepared with AlphaScala research tooling and grounded in primary market data: live prices, fundamentals, SEC filings, hedge-fund holdings, and insider activity. Each story is checked against AlphaScala publishing rules before release. Educational coverage, not personalized advice.