Nomura Holdings, Inc.

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Japan's ruling Liberal Democratic Party (LDP) has proposed a five-year plan for stablecoins and blockchain settlement, urging the Financial Services Agency to create a roadmap. The plan highlights the need for on-chain finance to protect the yen's sovereignty and warns of Japan's potential lag in global payment systems. It also seeks clearer regulations on payroll, tax payments, corporate funding, and cross-border transfers.

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Currencyshares JPY Trust

Mitsubishi UFJ Financial Group, Inc.

Japan's LDP Proposes Five-Year Plan for Stablecoins and Blockchain Settlement

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Japan's economy grew by an annualized 2.1% in Q1, surpassing forecasts, but faces challenges due to the Iran war's impact on energy supplies. Private consumption rose 0.3%, and net external demand contributed positively. Analysts predict potential contraction in Q2 as energy costs rise, affecting inflation and corporate profits. The Bank of Japan's interest rate hike expectations may shift depending on the severity of supply disruptions.

- Japan's economy grew at an annualized rate of 2.1% in the first quarter, exceeding the market's expected 1.7%.  
- This growth is now threatened by the energy impacts of the Iranian conflict, with analysts predicting a slowdown in future quarters.  
- Private consumption increased by 0.3%, while net external demand contributed 0.3 percentage points to growth, despite rising risks from oil price fluctuations and supply disruptions.

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ISHRS MSCI Japan

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FI2 CSOP NIKKEI

Dai-ichi Life Holdings,Inc.

Thomson Reuters

Japan’s economy grows at solid pace in Q1, but Iran war set to upend momentum

Japan is developing guidelines to use Anthropic's Mythos for enhancing cybersecurity. This initiative aims to protect critical infrastructure and national security by integrating advanced AI technologies, reflecting Japan's commitment to strengthening its cyber defense amid global challenges.

AI TRENDS | Japan to Develop Cyber Defense Guidelines Using Anthropic's Mythos

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BLOK

Japan's central bank is advocating for a comprehensive approach to the future global currency system, emphasizing options beyond CBDCs and stablecoins, including tokenized bank deposits and blockchain-based reserves. Vice Governor Ryozo Himino highlighted differing global strategies, with the U.S. promoting stablecoins and Europe advancing the digital euro. Japan is preparing for both paths with stablecoin legislation and a CBDC pilot project, while exploring blockchain technology for real-time payment settlements.

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Amplify Transform Data Sharing ETF

Japan's Central Bank Advocates Comprehensive Approach to Future Global Currency System

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Bank of Japan Deputy Governor Ryozo Himino advocates for a 'holistic approach' to the global monetary system, emphasizing options beyond central bank digital currencies (CBDCs) and stablecoins. He highlights Japan's readiness for both CBDCs and stablecoins, while calling for consideration of factors like technical feasibility and financial stability. The BOJ is exploring blockchain technology for payment solutions and has initiated a pilot program for retail CBDCs. Japan's government supports stablecoin projects for cross-border payments.

- On May 16, Japan's Deputy Governor of the Bank of Japan, Ryozo Hino, called for a holistic approach to designing the future global monetary system beyond central bank digital currencies (CBDCs) and stablecoins.  
- He noted Japan's readiness for both paths, leading in stablecoin legislation and piloting CBDCs, emphasizing the need to include various factors such as technological feasibility and financial stability.  
- The Bank of Japan has initiated a sandbox project to explore tokenization of reserves for blockchain-based payment solutions, which could facilitate instant settlements and reduce congestion risks during high-stress events.

SecuAvail, Inc.

BOJ's Himino calls for 'holistic approach' on global monetary system

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Bank of Japan's Kazushige Kamiyama warned that while investment funds are crucial for providing risk capital, they also pose risks to the financial system. He noted the growing presence of foreign hedge and private equity funds in Japan, which could lead to increased price volatility in markets. As Japanese institutions lend more to these funds, the risk of external shocks affecting domestic markets rises, highlighting the need for enhanced cooperation among global financial authorities.

BlackRock, Inc.

Rakuten Investment Management, Inc.

BOJ warns of financial system risks from investment fund activity

Secured Finance has joined the 'Tokenized Japanese Government Bonds On-Chain Repo Working Group' initiated by Progmat. This group will focus on managing tokenized Japanese Government Bonds (JGBs) on-chain and explore their integration with stablecoin cash endpoints and lending protocols for repo transactions aimed at Japanese institutional investors. The working group will address various aspects including legal, accounting, tax, operational, and technical issues. It is set to begin in May 2026 and aims to publish a report by October 2026.

Secured Finance Joins Tokenized Japanese Government Bonds Initiative

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The Nikkei 225 Index reached a record high of ¥60,787, driven by key catalysts this week. The ongoing US-Iran war and its impact on crude oil prices, which hit $107, is a major factor, as Japan relies heavily on energy imports. Additionally, the Bank of Japan's interest rate decision, expected to remain at 0.75%, may lead to a future hike. Important corporate earnings from major Japanese firms, including those backed by Warren Buffett, will also influence the index's performance.

Invezz

Huaan MUFG N225 ETF(QDII)

ChinaAMC Nomura N225 ETF(QDII)

Pro Ultrshrt Yen

Top 3 catalysts for the Nikkei 225 Index this week

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Japan's manufacturing activity expanded at its strongest pace in four years in April, with the S&P Global flash Manufacturing PMI rising to 54.9 from 51.6 in March. Concerns over potential supply shortages due to tensions in the Middle East drove this increase. However, service sector activity slowed, with the services PMI falling to 51.2. Price pressures intensified, with input costs rising sharply, and business confidence weakened, reaching its lowest level since August 2020. The composite PMI slipped to 52.4 as slower service growth offset manufacturing gains.

- In April, Japan's manufacturing activity expanded at its strongest pace in four years, driven by concerns over potential supply shortages due to rising tensions in the Middle East.  
- The S&P Global Flash Japan Manufacturing Purchasing Managers' Index (PMI) climbed to 54.9, the highest since January 2022, with factory output increasing the most since February 2014.  
- However, service sector activity slowed, and overall business confidence dipped to its lowest level since August 2020, indicating a mixed economic outlook.

Kyodo Printing Co., Ltd.

S&P Global

Japan's factory activity expands at strongest pace in 4 years, PMI shows

Brevan Howard Asset Management plans to open a Tokyo office this summer, aiming to capitalize on trading opportunities in Japan. The firm will initially operate from the Shin-Marunouchi Center Building while searching for permanent space. It is recruiting for investment roles, particularly in trading Japanese government bonds and yen swaps. This move reflects a broader trend of global finance firms expanding in Japan, driven by a recovering rates market and corporate governance reforms. Brevan Howard manages approximately $11.7 billion in its Master Fund and $11.3 billion in its Alpha Strategies Fund.

Nomura Holdings, Inc.(1357.JP)

Japan's LDP Proposes Five-Year Plan for Stablecoins and Blockchain Settlement

Japan’s economy grows at solid pace in Q1, but Iran war set to upend momentum

AI TRENDS | Japan to Develop Cyber Defense Guidelines Using Anthropic's Mythos

Japan's Central Bank Advocates Comprehensive Approach to Future Global Currency System

BOJ's Himino calls for 'holistic approach' on global monetary system