Japan’s Financial Services Agency plans to apply on-chain finance to real-world financial services and infrastructure under its fiscal 2026 financial administration policy. The agency will examine technical, regulatory and supervisory issues through public-private pilot programs and consultations, while maintaining user protection and financial system stability. It also plans to establish an on-chain finance forum aligned with the AI era, promote on-chain payment methods and their connections to existing financial infrastructure, and review shorter securities settlement periods and system upgrades with industry officials ahead of broader asset tokenization.