LDP Approves Five-Year On-Chain Finance Roadmap to Protect Yen

Japan’s ruling Liberal Democratic Party approved a proposal on May 19, 2026, advancing on-chain finance as national infrastructure to safeguard yen sovereignty. The plan requests a five-year roadmap from the Financial Services Agency and Bank of Japan, calling for studies on tokenized current-account deposits, bank-issued stablecoins, and a wholesale CBDC. It also seeks clearer rules for cross-border yen stablecoin use, KYC/AML compliance, audits, and 24/7 settlement. Regulators have already green-lit a stablecoin proof-of-concept involving MUFG, Sumitomo Mitsui, and Mizuho. While proponents highlight faster settlement and new monetary-policy channels that could support the yen and JGB demand, legacy systems and regulatory hurdles may limit near-term effects on USDJPY.