Major news: Japan’s Financial Services Agency has released the minutes of the “On-chain Finance Forum” held on September 30. This time, both government bonds and central bank deposits were on the table 🇯🇵
The forum was chaired by Katayama, the Minister of State for Financial Services. Representatives from the Ministry of Finance, the Bank of Japan, the Digital Agency, and the Japanese Bankers Association also attended. A few points from the minutes stand out:
🔹 Ministry of Finance: An expert panel on putting government bonds on-chain (tokenization) will launch in October, starting by examining the impact on the government bond market and related issues
🔹 Bank of Japan: It is advancing a DLT sandbox to test using banks’ current account deposits at the BOJ for on-chain settlement. It is also participating in Project Agorá, led by the BIS, with the goal of enabling 24/7 cross-border settlement
🔹 Figures from the FSA: The global stablecoin market is worth about $310 billion, of which 83% are dollar stablecoins
🔹 The FSA’s PIP payment innovation program has supported four use cases, including yen stablecoin remittances and interbank transfers of tokenized deposits
🔹 Timeline: An interim report and a public-private partnership roadmap are due in early 2027
My take is that Japan is pursuing a “bank-led” approach: government bonds, central bank deposits, and tokenized deposits will all move on-chain, with traditional financial institutions building the infrastructure. Dollar stablecoins account for more than 80% of the market, so if the yen is to claim a place on-chain, this step is inevitable sooner or later.
For crypto markets, this isn’t directly bullish for any particular coin in the short term. But as sovereign assets start moving on-chain, it could generate more real-world demand over the long term for RWAs and public settlement blockchains like Ethereum.
Do you think yen stablecoins can catch up with dollar stablecoins on-chain?
#日本金融厅发布链上金融纪要 #ETH #BTC
The forum was chaired by Katayama, the Minister of State for Financial Services. Representatives from the Ministry of Finance, the Bank of Japan, the Digital Agency, and the Japanese Bankers Association also attended. A few points from the minutes stand out:
🔹 Ministry of Finance: An expert panel on putting government bonds on-chain (tokenization) will launch in October, starting by examining the impact on the government bond market and related issues
🔹 Bank of Japan: It is advancing a DLT sandbox to test using banks’ current account deposits at the BOJ for on-chain settlement. It is also participating in Project Agorá, led by the BIS, with the goal of enabling 24/7 cross-border settlement
🔹 Figures from the FSA: The global stablecoin market is worth about $310 billion, of which 83% are dollar stablecoins
🔹 The FSA’s PIP payment innovation program has supported four use cases, including yen stablecoin remittances and interbank transfers of tokenized deposits
🔹 Timeline: An interim report and a public-private partnership roadmap are due in early 2027
My take is that Japan is pursuing a “bank-led” approach: government bonds, central bank deposits, and tokenized deposits will all move on-chain, with traditional financial institutions building the infrastructure. Dollar stablecoins account for more than 80% of the market, so if the yen is to claim a place on-chain, this step is inevitable sooner or later.
For crypto markets, this isn’t directly bullish for any particular coin in the short term. But as sovereign assets start moving on-chain, it could generate more real-world demand over the long term for RWAs and public settlement blockchains like Ethereum.
Do you think yen stablecoins can catch up with dollar stablecoins on-chain?
#日本金融厅发布链上金融纪要 #ETH #BTC