Japan FSA prioritizes blockchain adoption as SWIFT tests digital ledger with major banks

Japan's Financial Services Agency (FSA) has designated blockchain-based on-chain finance as a top policy priority for its 2026 program year, targeting payments, securities settlement, and tokenization. This regulatory push coincides with the SWIFT financial messaging network launching trials of a blockchain digital ledger for 24-hour cross-border bank transfers. Meanwhile, major Japanese banks like MUFG, SMBC, and Mizuho are preparing joint stablecoin transactions to modernize payment infrastructure.

Japan FSA blockchain policy priorities

• ▪The Financial Services Agency outlined its blockchain and artificial intelligence policy direction in its 2026 Strategic Priorities published on September 15, 2026.
• ▪Japan's Financial Services Agency made the adoption of blockchain-based on-chain finance a policy priority for its 2026 program year, covering payments, securities settlement, tokenization, and cross-border transfers.

SWIFT blockchain ledger trials

• ▪The SWIFT digital ledger platform is designed to enable real-time transfers even when bank branches are closed, which could help popularize tokenization.
• ▪The SWIFT financial messaging network began trials of a blockchain digital ledger for always-on, cross-border transfers between banks to speed up transactions and lower fees.

On-chain Finance Forum establishment

• ▪The Financial Services Agency will conduct discussions on technology integration through the Study Group on Digital and Decentralized Finance and the Study Group on Promoting the Sound Use of AI.
• ▪The Financial Services Agency plans to establish an On-chain Finance Forum for the AI Era to examine technical, regulatory, and supervisory issues for practical use.

Securities settlement infrastructure upgrades

• ▪Four Mitsubishi UFJ Financial Group companies began testing Japanese Government Bond repos on the Canton Network in August 2026 to examine automated processing and 24-hour settlement.
• ▪Japanese authorities, including the Financial Services Agency, Ministry of Finance, and Bank of Japan, are preparing to study 24/7 blockchain settlement for listed stocks and government bonds.

Asset tokenization development

• ▪SBI Holdings and the Solana Foundation formed a strategic partnership in July 2026 focused on stablecoins, tokenized assets, payments, and institutional blockchain services in Asian markets.
• ▪SBI Global Asset Management and DigiFT launched a tokenized Japanese equity fund on the Solana blockchain in July 2026 to provide institutional investors with high-dividend equity strategy access.

Cross-border payment initiatives

• ▪MUFG Bank, Sumitomo Mitsui Banking Corporation, and Mizuho Bank are preparing joint stablecoin transactions under a common framework, targeting live activity by March 2027.
• ▪Japan plans to host Asia Day 2027 during Japan Fintech Week in early 2027 to focus on upgrading cross-border transfers through on-chain finance.

Debatable claims

• ▪SWIFT should integrate blockchain technology for cross-border payments
• ▪Japan's FSA should prioritize blockchain-based on-chain finance