Japan’s Ruling Party Backs Landmark AI-Blockchain Finance Proposal

Japan’s ruling Liberal Democratic Party (LDP) has formally approved a policy proposal to rebuild the country's financial system on blockchain and artificial intelligence foundations. 

The document outlines a national strategy for on-chain finance where AI agents autonomously execute payments, trades, and asset management around the clock. 

The proposal represents one of the most comprehensive government-level blueprints for AI-blockchain financial integration from a major economy to date.

The proposal identifies six core pillars for overhauling Japan's financial infrastructure. Central to the plan is the tokenization of real-world assets (RWA), including bank deposits, securities, and real estate, settled directly on blockchain networks, enabling continuous 24/7 markets with no market close.

Yen-denominated stablecoins and tokenized bank deposits would serve as primary settlement tools, replacing legacy interbank rails for both domestic and cross-border payments. Digital securities would be integrated into a unified, programmable ledger-based system designed to reduce transaction costs and settlement delays.

The AI layer is equally central to the proposal: autonomous AI agents would function as financial operators, executing trades, managing liquidity, rebalancing portfolios, and optimizing payments without direct human intervention. The document frames AI as an emerging "economic actor" capable of holding and deploying financial value through tokenized systems.

Blockchain is positioned as the trust and settlement layer, with AI serving as the decision-making and execution layer, together enabling machine-to-machine transactions and real-time financial optimization.

Implementing the proposal would require significant legal restructuring across Japan's financial system. 

The LDP document calls for updates to trust law, payment services regulation, and securities law, alongside formal coordination between the Financial Services Agency (FSA), the Bank of Japan, and private financial institutions.

Japan’s ruling party frames this as a policy-led transformation, comparing the scale of change to the historic shift from analog to internet-based finance. 

Japan's LDP proposal is one of the most detailed state-level frameworks for converging AI and blockchain into national financial infrastructure, potentially providing a policy template that other governments may reference as on-chain finance matures globally.

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