Japan Finance Minister Satsuki Katayama, speaking at the Tokyo Stock Exchange, called 2026 the “Digital Year One” and vowed to fully support exchanges in providing direct public access to digital assets. The statement reignites hopes for the approval of Japan’s first Bitcoin ETF, though the timeline and final regulatory interpretation remain uncertain.
SBI Holdings Files for BTC and XRP ETFs
In August 2025, SBI Holdings, a financial conglomerate with approximately $214 billion in assets, submitted applications to launch Bitcoin and XRP ETFs. Approval is still pending amid Japan’s evolving regulatory framework. Analysts estimate that Japan’s $1.5 trillion in household savings could drive significant inflows into crypto once ETFs go live, potentially boosting nationwide adoption.
Beyond ETFs, Japan is rolling out a series of crypto-friendly reforms: crypto tax rates slashed from a maximum of 55% to 20%, over 100 cryptocurrencies reclassified under securities-like rules for greater transparency, and public firms like Metaplanet adding Bitcoin to their treasuries, while retail participation grows.
Yen Stablecoin JPYC Goes Live, Megabanks Pilot Tokenized Deposits
Japan launched its first legal yen stablecoin, JPYC, in October 2025. Meanwhile, megabanks including MUFG, SMBC, and Mizuho are piloting yen-pegged stablecoins and tokenized bank deposits for faster blockchain-based settlements. These reforms aim to revive domestic trading and attract institutional capital amid yen weakness and inflation.
Bank of Japan Tightens Policy, Bond Yields Hit 25-Year High
Monetary policy is shifting. On January 5, 2026, the 10-year Japanese government bond yield jumped to 2.12%, the highest since 1999. BOJ Governor Kazuo Ueda confirmed rate hikes will continue if growth and inflation targets hold. The current benchmark rate of 0.75% is a 30-year high, yet the yen remains weak and inflation stays above the 2% target at 2.90%.
The hawkish shift could create yen volatility and influence risk assets like Bitcoin. In the last 24 hours, the crypto market gained 1.12%, with Bitcoin climbing to $92,500 (+1.37%). U.S. Bitcoin ETFs saw net inflows of $459 million, and BTC short liquidations reached $63.79 million. The Crypto Fear & Greed Index improved to 42 from 25 a month ago.
Finance Minister’s Vision: Break the Glass Ceiling, Mobilize Savings
In her New Year address, Katayama framed 2026 as a turning point. She emphasized responsible fiscal policy and targeted investment in growth sectors to overcome deflation and shift household savings into productive investments. “The glass ceiling has already been broken,” she said, expressing confidence in market growth. She pledged to fully support exchanges, ensuring citizens benefit from digital assets through secure trading platforms.
With sweeping reforms reshaping Japan’s financial system in 2026, approval of the country’s first Bitcoin ETF appears closer than ever.