How Blockchain Will Transform Global Finance: Latest Cases from Three Mega Banks at WebX2026

WebX2026 Session Report

How Blockchain Will Transform Global Finance: Latest Cases from Three Mega Banks

Rinko Hibiya × Hiroshi Kawagoe × Naoki Taniguchi

Representatives from Mizuho Financial Group, Sumitomo Mitsui Banking Corporation, and Mitsubishi UFJ Financial Group discussed the challenges and prospects for Japanese financial institutions as they integrate blockchain into their remittance and payment infrastructure, referencing overseas leading examples.

Barriers to Blockchain Payments

Moderator Hiroshi Inoue asked Hiroshi Kawagoe about the current barriers faced when implementing blockchain in real-world remittance and payment environments in Japan.
Hiroshi Kawagoe
He reflected that when blockchain technology first emerged, he felt that "this cannot be used for payments." At that time, it was not practical in terms of processing speed, and the mechanism of sharing remittance information among all participants was not suitable for the payment business. He noted that while issues of scalability and data privacy have progressed with technological advancements, challenges such as probabilistic finality, ensuring finality with central bank money, and compliance requirements still remain in practical use.
Hiroshi Inoue
He mentioned that while technical issues of finality and throughput were recognized within the crypto-blockchain industry, concerns regarding privacy and alignment with central bank money were likely needs that became apparent only when financial institutions actually took on the business.

Two Trends Observed Overseas

The discussion shifted to overseas examples, with Inoue highlighting two contrasting movements: "Augustus," a bank built on blockchain native principles centered around AI and stablecoins, and the industry foundation for tokenized deposits involving major U.S. banks.
Hiroshi Inoue
He introduced Augustus as "a bank built entirely on blockchain with a 25-year-old CEO," citing cost efficiency, processing speed, and 24/7 operation as the biggest advantages of using blockchain. He asked Naoki Taniguchi how Augustus is attempting to overcome existing barriers and how it is viewed by traditional financial institutions.
Naoki Taniguchi
He pointed out that the boundary between startups and banks has blurred over the past decade due to the use of AI and blockchain in delivering "safe and secure payments." While he admitted he did not know much about Augustus, he emphasized that clearing, which connects senders and receivers, is an essential role, and that they are also working on obtaining a banking license in the U.S. with an eye on AI-to-AI payments and machine-to-machine payments. He expressed that as the on-chain economy expands, the role of clearing will again be in demand.
Rinko Hibiya
She noted that the name Augustus is derived from the Roman Emperor Augustus (the first emperor to unify currency, who rose to power from a position that could not have been a successor) and expressed interest in how it might disrupt existing banking powers.
Hiroshi Inoue
He continued by mentioning TCH (The Clearing House) as a movement to enhance existing infrastructure, asking Kawagoe and Hibiya for their evaluations of TCH's efforts in tokenized deposits.
Hiroshi Kawagoe
He stated that he views TCH's initiatives as "a good effort." He highlighted that not only are major banks that have already issued tokenized deposits connecting, but they are also trying to provide a platform for smaller banks that do not issue them, and he is watching future developments from the perspective of scalability and network size.
Rinko Hibiya
She shared insights from discussions with shareholders of major banks, noting that the deliberation status of the U.S. market structure bill concerning stablecoins, the "Clarity Act," is a backdrop. While the law regarding the issuance of stablecoins, the "Genius Act," has already been enacted, the Clarity Act has not yet passed, and there is a tug-of-war between U.S. banks and the cryptocurrency industry regarding concerns that stablecoins might deprive bank deposits of interest. She explained that major U.S. banks are trying to gain momentum by establishing a tokenized deposit foundation at TCH.
Hiroshi Inoue
He summarized that to involve many existing financial institutions, the presence of a neutral infrastructure like TCH is crucial, and it is a movement that should be welcomed by blockchain advocates.

Current State of Blockchain Asset Utilization in Corporate Finance

The discussion then shifted to the utilization of blockchain assets in corporate finance, a major use case for transaction banking. Inoue asked Taniguchi about the realities of B2B payments and finance concerning stablecoins and tokenized deposits.
Naoki Taniguchi
From his position interacting with customers daily, he explained that many Japanese companies are still in the watching phase, wondering "how will it actually be used?" While statistics show that usage is beginning to expand in cross-border corporate trade payments, he pointed out that integration with internal systems like ERP, anti-money laundering measures, and accounting processes contribute to the heavy costs of implementation. He noted that as network effects and convenience accumulate, adoption will progress, but since corporate decision-making takes time, he views it as ultimately a matter of time.

The Future of Two-Tier Structures and Pooling Operations

Inoue raised the issue of the two-tier structure that arises between tokenized deposits transferred on blockchain and deposits operating within existing accounting systems, asking Kawagoe how this structure should be resolved while aiming for 24/7 operation.
Hiroshi Kawagoe
He explained that movements to break through the two-tier structure are advancing not only in blockchain utilization but also in the off-chain world. He cited the Federal Reserve's (FRB) initiation of weekend operations and the announcement of a new system concept aiming for 24/7 instant payments, stating that both are rooted in the same awareness of issues. However, he noted that existing systems, burdened by legacy issues, take time to realize, while the on-chain world can be built from scratch without such constraints, suggesting that on-chain may have an advantage in terms of speed.
Hiroshi Inoue
He asked Hibiya how the operation of fund pooling in corporate finance would change once 24/7 operation is realized.
Rinko Hibiya
Regarding pooling operations that adjust fund surpluses and shortages among subsidiaries within a group, she noted that currently, it is limited to settings that move funds based on specific times or amounts, but with programmable mechanisms, funds could be moved dynamically even on an hourly basis. She pointed out that the very concept of traditional pooling services may come to an end, expressing it as "the beginning of the end of pooling services," and suggested that as system constraints are lifted, new optimization services may emerge to replace them.
Hiroshi Inoue
Following this statement, he expressed that once 24/7 operation becomes widespread, there are expectations for its utilization as embedded finance, seeking Taniguchi's views.
Naoki Taniguchi
He expressed agreement with Hibiya's expression of "the beginning of the end of pooling" and pointed out that the essential value banks provide to customers is credit extension and liquidity supply, and the way this is delivered has merely shifted from letters and faxes to the internet and now to blockchain. He noted that connecting with customer companies' ERP and treasury management systems will become crucial, and that the realization of embedded finance faces the reality of complexly intertwined legacy systems, indicating that progress will not be swift.

Session Summary

Finally, moderator Inoue asked each speaker about the past and future for Japanese financial institutions. Kawagoe stated, "I think it is not so much that financial institutions or payments themselves are changing, but that customer needs are changing," and expressed that if one stands from the perspective of how to respond to these changes, what needs to be done will naturally become clear. Hibiya pointed out that digital assets and payments should inherently be inseparable pairs, but in Japan, while the transfer of security tokens can be completed instantly, payments remain as bank transfers, indicating a divergence between the two. She stated that the future challenge is to unify central bank money and credible payment assets that can substitute for it on a single ledger, achieving simultaneous settlement of funds and securities. Taniguchi remarked that banks themselves need to break out of their shells and change rather than merely responding to environmental changes, emphasizing the importance of how mega banks have implemented AI and blockchain over the past three to four years and how they will deliver these results to customers in the future.

Inoue concluded the session with the following words:

"Through today's session, I hope that not only the overseas leading examples but also the fact that Japanese financial institutions and banks are engaging with this field, are knowledgeable, and are working with this level of enthusiasm can be felt by everyone who attended."