Japan’s LDP Approves Next-Generation AI and Onchain Finance Plan With Yen Stablecoins

Japan’s ruling Liberal Democratic Party (LDP) formally approved a policy concept proposal titled "Next-generation AI & Onchain Finance Concept" to build a next-generation financial system using AI and blockchain infrastructure.

“Japan’s LDP Unveils AI-Blockchain Finance Plan to Promote Stablecoins, Tokenized Deposits Summary - The LDP’s Next-Generation AI and On-Chain Finance Vision project team released policy recommendations for building next-generation financial infrastructure centered on stablecoins and tokenized deposits (TD)”

bloomingbit

The proposal was drafted by an internal LDP project team led by party member Seiji Kihara and received official sign-off from the party's Policy Research Council on Tuesday, with Kihara describing the approval as a starting point.

bloomingbit

At the center of the plan is a framework for automated financial infrastructure designed to support 24/7 agenticcommerce through blockchain networks, alongside support for tokenized deposits and Japanese yen-denominated stablecoins.

The proposal says tokenizing the Bank of Japan's current account deposits is essential, and it calls for legal clarity and measures to contain systemic risk for stablecoins.

The LDP asked the Financial Services Agency to prepare a five-year roadmap for promoting investment in the project, involving both public and private sector participants.

Kihara said in the approval process, "It is truly a 'concept,' and from here on, we will build it up piece by piece," framing the party’s decision as the first step toward implementation.

The Block reported that the proposal said it is essential to tokenize the Bank of Japan's current account deposits, and it highlighted the importance of legal clarity and mitigating systemic risks for stablecoins.

CoinMarketCap

CoinMarketCap said the plan includes support for tokenizeddeposits and Japanese yen-denominated stablecoins, and it states that on stablecoins it calls for legal clarity and measures to contain systemic risk.

Multiple outlets tied the next step to the Financial Services Agency, with Yahoo Finance reporting that the government has tasked the FSA with formulating a five-year roadmap to promote public-private investment in the initiative.

The Block added that with official approval, the LDP will now work with relevant parties to turn this proposal into government policy.

The proposal backs tokenized deposits and yen-denominated stablecoins as core elements of a 24/7 automated payments architecture, and it frames blockchain as programmable and tamper-resistant for transactions.

“LDP’s AI and blockchain proposal”

Cointelegraph

Cointelegraph’s coverage of the same initiative cites LDP member Seiji Kihara saying, "While this truly remains a 'vision' — one that we will now build piece by piece — I believe we have successfully succeeded in sketching out the 'big picture' as a first step," and it adds that the critical task lies in follow-up work.

The Block reported that the proposal supports the joint stablecoin issuance project under three Japanese megabanks, and it also called for a framework to strengthen cooperation with other Asian countries on AI and blockchain initiatives.

CoinMarketCap said the plan includes support for tokenizeddeposits and Japanese yen-denominated stablecoins, and it argues that blockchain’s programmable and tamper-resistant properties make it well-suited to underpin agenticcommerce transactions.

The Block said the LDP will now work with relevant parties to turn the concept into government policy, after the party’s Policy Research Council approval.