Japan Financial Services Agency Formalizes On-Chain Finance and Asset Tokenization Push

Japan's Financial Services Agency has formally incorporated into its 2026 financial administration policy the social implementation of blockchain-based on-chain finance and enhanced securities settlement considerations for asset tokenization. The agency announced on September 15 that it will advance practical trials and public-private dialogue on on-chain finance, while reviewing technological, regulatory, and supervisory challenges, all under the premise of user protection and financial system stability. It also plans to launch an 'On-Chain Finance Forum for the AI Era' to facilitate related discussions. The agency stated it will examine streamlining and enhancing securities settlement in light of asset tokenization development, and intends to host 'Asia Day 2027' during Japan FinTech Week in February-March 2027 to advance cross-border remittance improvements using on-chain finance.