Japan Finance Minister Backs Integration of Digital Assets Into TradFi

• Katayama called this year the digital year and promised to offer complete support for stock and commodity exchanges.
• Japan has also worked hard in the year 2025 to improve its financial system to make the country a crypto hub.

The Minister of Finance of Japan, Satsuki Katayama, showed her complete support for amalgamating digital assets into traditional financial systems at the time of her New Year’s address at the Tokyo Stock Exchange on January 5. 

The report from CoinPost mentions that Katayama reveals that stock and commodity exchanges have a prominent role in offering wider public access to virtual blockchain-based assets. 

The finance minister also gave examples of the U.S., mainly how crypto exchange-traded funds have become prominent tools used by investors to hedge against inflation. This indicates a hedge against inflation. This indicates the same kind of development could take place in the country. 

Currently, there are no domestic crypto ETFs available for local traders. Katayama also called this year the digital year and promised to offer complete support for stock and commodity exchanges in setting up innovative trading environments that use cutting-edge technology. 

The Milestone Year

Apart from digital assets, the minister also mentioned that this year will be a milestone for addressing the long-term structural challenges of Japan, like deflation via fiscal policies and investment in growth sectors, as per the report. 

Japan has also worked hard in the year 2025 to improve its financial system to make the country a crypto hub. Back in October, the Financial Services Agency was in discussions to potentially permit banks to trade and hold crypto assets like stocks and government bonds. 

The agency of Japan also permitted the first yen-pegged stablecoin known as JPYC in October in the country. Not only this, but it also put a stamp on plans in November to recategorise 105 major cryptocurrencies, adding BTC and ETH, as financial products under current regulations. 

This may lead to further utilization of the tokens in traditional finance. Adding more to this, the authorities are looking to cut the tax rate on those cryptocurrencies from the current maximum of 55% to 20%. 

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