Financials: Japan’s Digital Asset Market: From Crypto Assets to Financial Infrastructure Reform

Research evidence excerpt

Financials: Japan’s Digital Asset Market: From Crypto Assets to Financial Infrastructure Reform

Update

May 27, 2026 05:41 AM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MFinancials | Japan Mia Nagasaka

Equity Analyst

Japan’s Digital Asset Market: Mia.Nagasaka@morganstanleymufg.com +81 3 6836-8406

From Crypto Assets to Financial

Infrastructure Reform Banks

Japan

At our Japan Summit, we hosted a discussion with experts on Industry View Attractive

“The World of Digital Assets and Stablecoins Unlocked by

Tokenization.” Japanese financial institutions could also benefit

over the medium term.

Key Takeaways

Digital assets commercialization is advancing in Japan, integrating with the

existing financial system.

Key focus areas are tokenized JGBs, on-chain repo, and improved funding and

collateral efficiency through stablecoins.

Existing financial institutions such as megabanks, trust banks, and major

securities firms may benefit over the medium to long term.

Discussion at Japan Summit 2026 (May 20–21): We held a panel discussion with

management from Progmat, Inc. and JPYC on the theme “Building Japan’s Digital

Asset Stack: Infrastructure, Use Cases, and the Road to Wider Adoption.” The

discussion suggested that Japan’s digital asset market may be evolving from the

traditional framework of crypto assets into the broader theme of financial market

infrastructure reform. We think it is important to view digital assets not merely as a

new asset class but as next-generation financial infrastructure that supports funding

efficiency, collateral efficiency, liquidity management, cross-border payments, and

the realization of financial markets that operate 24 hours a day. Please see the next

section for details.