Japan approves AI-blockchain finance overhaul for 2027

Japan's ruling party approved a policy to integrate AI and blockchain in finance, targeting automated 24/7 markets, tokenized assets, and yen stablecoins by 2027.

Japan's ruling Liberal Democratic Party has approved a comprehensive policy to modernize the nation's financial system by integrating artificial intelligence and blockchain technology. The initiative, titled "Next-Generation AI and On-Chain Finance," aims to automate decision-making, payments, lending, and asset management, establishing finance as Japan's 18th growth investment sector. Key measures include tokenizing Bank of Japan current account deposits, developing wholesale central bank digital currencies, and issuing yen-denominated stablecoins by major banks, with operational launches targeted by March 2027. The policy also supports tokenizing real-world assets such as receivables, securities, and real estate, enabling 24/7 markets and programmable, instant settlements. Autonomous AI agents are envisioned to execute trades and manage portfolios without human intervention. The proposal positions blockchain and AI as core national infrastructure and includes plans for regional collaboration and cross-border settlements using yen stablecoins.