On-Chain Financial Strategies of the Three Mega Banks: How Stablecoins and AI Will Transform the Future of Banking | WebX 2026

WebX 2026

On-Chain Financial Strategies of the Three Mega Banks: How Stablecoins and AI Will Transform the Future of Banking

Hiroshi Iso × Nobuhiro Uenoyama × Tadashi Yamamoto

Stablecoins, tokenized deposits, on-chain finance. As the digitalization of finance accelerates, the digital executives of the three major financial groups—Sumitomo Mitsui Financial Group, Mizuho Financial Group, and Mitsubishi UFJ Financial Group—gathered together. Each top digital officer of the "three mega banks" discussed the details of their dual strategy and presented visions of how AI will change banking business models. The moderator was Keita Sekiguchi from the Nikkei.

Stablecoins and Tokenized Deposits: The "Dual Strategy" of the Three Megas

At the outset, Sekiguchi asked which of stablecoins and tokenized deposits (tokenized deposits) is the "main contender." All three parties unanimously agreed on "dual strategy." However, there were subtle differences in priorities among the companies, creating a tense atmosphere for discussion.
Hiroshi Iso
There is no such thing as one being the "main contender." Just as people use credit cards, debit cards, and QR code payments in their own ways, stablecoins and tokenized deposits share programmability but have unique circumstances, leading users to differentiate between them. Therefore, SMBC is advancing the development of both.
Tadashi Yamamoto
From the bank's perspective, I would prefer to pursue tokenized deposits. They can leverage the credit creation function and are closer to existing banking operations. However, as stablecoins expand outside the banking economic sphere, there is a risk that deposits may flow there. This could potentially weaken Japan's financial functions, so we are adopting a dual strategy to be prepared for either direction.
Nobuhiro Uenoyama
This is not a decision for financial institutions to make; it depends on what the actual users aim to achieve. Transitioning to new methods using blockchain technology incurs change costs. It is still unclear which option offers enough usability to overcome those costs. Therefore, we will prepare both options.
Note: In Japan, the revised Payment Services Act, which came into effect in June 2023, has allowed banks and money transfer businesses to issue stablecoins as electronic payment methods. Tokenized deposits can be issued within the existing banking law framework, making the institutional hurdles lower than for stablecoins.

What the Three Megas Aim for with Joint Stablecoins

During the session, the establishment of a council for stablecoins jointly considered by the three mega banks was discussed. Specific use cases were cited as challenges behind this initiative.
Hiroshi Iso
I want to talk about CMS (Cash Management System). When large corporations have bases in Japan, Singapore, New York, and Europe, sales funds accumulate in each location. Ideally, they want to consolidate these at headquarters, but due to time zone differences and varying cutoff times, a significant amount of funds remain in overseas locations. This causes inefficiencies in fund management. If each base is connected via blockchain and can aggregate in real-time with stablecoins 24/7, it would become a highly usable product for large corporations. If the three megas each issue separate stablecoins, companies will have to manage each one separately. There is a belief that they should work together from the start.
Nobuhiro Uenoyama
Payments are infrastructure. Infrastructure entails fixed costs, and a certain volume is needed to absorb those fixed costs. There are circumstances where it is difficult for each of the three banks to be profitable even if they invest. Additionally, if a certain number of users start using the infrastructure and the service is terminated midway, it would cause inconvenience. It may be necessary to expand the areas where they can collaborate from the beginning as infrastructure.
Keita Sekiguchi
Globally, grouping for tokenized deposits is progressing. While HSBC and others are leading group formations in Europe, Japan is a bit behind. It seems that Japan is taking the lead with stablecoins.
Note: In the international grouping of tokenized deposits, JP Morgan's Kinexys and HSBC are ahead. Since dollar-denominated transactions are leading, the three mega banks in Japan, which primarily deal in yen-denominated transactions, are perceived to be relatively slow in their movements, a common understanding among the three parties.

The Barriers of AML and KYC and the Potential for Streamlining through Blockchain

Sekiguchi pointed out that even if stablecoins are used for cross-border remittances, regulations for AML (Anti-Money Laundering) and KYC (Know Your Customer) apply, citing cases where banks temporarily refused remittances. He then sought the views of each company.
Nobuhiro Uenoyama
The difficulty with stablecoins lies precisely there. If we try to make it convenient, it leads to discussions about public chains, but that brings up issues with AML and anti-social checks. If we try to avoid that, it becomes a private chain, losing the advantages of stablecoins. As a financial institution, it is not an option to engage publicly while taking on the risks of AML and laws against the transfer of criminal proceeds. It inevitably becomes quite closed, raising questions about how it differs from existing systems.
Hiroshi Iso
You are correct; if we suddenly go public, it could lead to significant issues, so I don't think it will happen. However, we should have a proper discussion about how it compares to the current situation. In the current remittance verification process, humans check each document one by one. With blockchain, the flow of money is all connected and traceable. If we utilize AI for that traceability, there is room for streamlining. Moreover, currently, each bank holds data separately and verifies it individually. If this can be shared and processed by AI, it would be easier with blockchain. While there may be increasing elements, there is also potential for reduction.
Tadashi Yamamoto
As you mentioned, it is indeed challenging. When AI and blockchain are combined, the costs of KYC on-chain may actually increase. With AI, the speed of transactions may reach levels beyond human capabilities, which could significantly raise those costs.

The Arrival of On-Chain Finance: "The Tree is Ripe"

The theme shifted to the future potential of on-chain finance. Iso expressed this arrival with the phrase "the tree is ripe."
Hiroshi Iso
Three years ago, it was not usable, and there was no AI. I think everyone had the impression that it was just "enthusiasts buying and selling." But now we are entering an era where AI is coming into smartphones. If you instruct an agent AI, it will operate automatically, and that image is becoming easier for everyone to envision. In the United States, the balance of stablecoins has reached an amount that can no longer be ignored, and institutional investors have begun to invest. Various factors have matured, so I believe the time has come to act.
Tadashi Yamamoto
MUFG previously considered "MUFG Coin." At that time, we tried to use blockchain but ultimately abandoned it. With the rise of smartphone payments, it was not possible to differentiate, and it made no sense to release it as a standalone product. It was difficult at that time unless various elements were connected, and AI was involved. The technology has matured significantly, and with AI, a completely different world is becoming visible. Moving financial functions on-chain with AI represents a significant change.
Nobuhiro Uenoyama
The advantages of on-chain finance are "cheap, fast, and convenient." In stocks and bonds, there are issues with settlements taking T+2 or T+3, but resolving that would improve fund efficiency. However, it is still unclear whether costs will truly decrease. Honestly, we are working on it with a sense of uncertainty within that expectation. However, I believe it is theoretically possible.
Note: In the U.S., the "GENIUS Act" (Stablecoin Regulation Act) is expected to be passed by Congress in 2025, accelerating institutional investor participation in dollar-pegged stablecoins. Yamamoto noted that this movement is also perceived as "pressure" on Japan's three mega banks.

Agentic Commerce and the Transformation of Banking Business Models

The final theme was AI and agentic commerce (a world where AI acts as a party in economic activities). Each company shared its unique perspectives on the possibilities and limitations.
Hiroshi Iso
I believe agentic commerce will split into two distinct paths. While people buy stationery on Amazon, very few buy houses on Amazon. Important corporate decisions may no longer be made based on text data. Recently, a phenomenon called the "honest placebo effect" has been discovered in psychology. Even a drug labeled "placebo" can be effective when taken. The act of swallowing a capsule and the sensation in the throat can rewrite the brain. What drives human behavioral change is enthusiasm and trust, rather than text. High-stakes corporate actions that can change lives will increasingly be decided through human interactions. Meanwhile, everyday matters will increasingly be entrusted to agents. I believe these two directions will diverge.
As programmability and on-chain advance, the era of having balances left in accounts may come to an end. People may typically have a zero balance in their accounts, borrowing only when needed for payments, and immediately investing when funds come in. This would fundamentally change how banks earn and their business models.
Tadashi Yamamoto
If AI agents and financial services are connected through a common standard, a world could emerge where they can be seamlessly integrated into various corporate services. Since AI cannot use cash, it can only use digital money. When combined with on-chain, a world may emerge where financial functions and transactions of various companies are connected without time loss.
Nobuhiro Uenoyama
Agentic commerce will definitely expand. However, I believe that very few people want to lose the joy of shopping, no matter how much automation progresses. It will never reach 100%, and people will likely differentiate based on their preferences. While we see from within the boundaries of finance, more businesses are entering finance from commerce and other services. It may be necessary to redefine our position as financial institutions.

Session Summary

Iso concluded the session by saying,
"The three megas are seriously discussing these matters and are cooperating where they should. We hope for your positive support."
The three mega banks' efforts to collaboratively build digital financial infrastructure while balancing competition and cooperation were highlighted throughout the session. The dual strategy of stablecoins and tokenized deposits, the potential for blockchain to overcome AML and KYC barriers, and the fusion with AI are all set to change how banks earn. The trial and error towards this realization is currently underway in Japan's major financial institutions.