Crypto: Why Yen Stablecoins Are Key To Japan’s Crypto Ambitions 2026
Japan’s regulators and conglomerates are working to bring one of the world’s key funding currencies into DeFi, but retail activity remains muted.
Japan is preparing its financial system for a world of stablecoins and tokenized assets, with banks, regulators and financial conglomerates working to bring the yen economy onchain.
The country is the world’s fourth-largest economy, and its yen is one of the most important currencies in global finance. According to the International Monetary Fund, the yen accounted for 5.82% of global foreign exchange reserves, ranking third worldwide.
A major reason for the yen’s systemic importance is the carry trade. Due to low interest rates, investors borrow cheap yen, convert it into other currencies and invest in higher-yield assets, making the yen one of the most trusted funding currencies for global markets.
Still, Japan’s central role in global finance has not been represented in the blockchain economy. That began to change after US President Donald Trump took office in January last year, which accelerated crypto policy discussions worldwide.
Like the US, Japan’s ruling party has stated its ambition to become a global center of Web3. Achieving that goal may depend on stablecoins capable of bringing the yen onchain. However, retail crypto activity in Japan remains relatively muted, even though the local industry is backed by some of the largest financial conglomerates and banks.
Sanae Takaichi became Japan’s first female prime minister in October 2025. In just a few months in office, she dissolved the lower house for a snap election. Her Liberal Democratic Party (LDP) secured a two-thirds supermajority victory on Feb. 8, and lawmakers voted to reelect Takaichi for a second term 10 days later.
Startale Group CEO Sota Watanabe told Cointelegraph that she is widely seen as politically and strategically aligned with the Trump administration, which is accelerating local crypto adoption.
In April 2024, Takaichi’s LDP released a Web3 white paper to state its ambition to “make Japan the center of Web3.” The document outlined 11 crypto issues to address “immediately,” including income tax reform for individuals, stablecoins and security tokens.
Those priorities are also set in the blockchain strategy of SBI Group, which is one of the largest financial conglomerates in Japan, led by Yoshitaka Kitao.
Source: CoinTelegraph
