According to Cointelegraph, Japan’s ruling Liberal Democratic Party (LDP) has greenlit a policy pathway to accelerate automated financial infrastructure through artificial intelligence and blockchain technology. The policy proposal, issued by the LDP Policy Research Council as part of the “Next Generation AI and Onchain Finance Initiative,” envisions using blockchain to settle payments across retail and wholesale channels, while enabling AI to autonomously execute economic activities. It also calls for clarifying the legality of yen-pegged stablecoins as part of a broader regulatory framework.

In a translated statement accompanying the publication, the council asserted that expanding blockchain adoption will be pivotal to constructing the infrastructure required to keep Japan at the forefront of AI-enabled finance. The document underscored the potential to deepen international cooperation, particularly with Asian economies that maintain strong economic ties with Japan, should Japan lead in creating a secure and trusted on-chain payments infrastructure.

“In Japan, the expanded adoption of blockchain technology will play a crucial role in establishing the necessary infrastructure to ensure that the nation remains ‘chosen by AI’,” the council stated, adding: “If we can take the lead among nations in establishing a secure and trusted payment infrastructure for on-chain transactions, we can anticipate deepening cooperation in various forms — such as by providing expertise and services — particularly with Asian countries that share strong economic ties with Japan.”

On the public record, LDP member Seiji Kihara reflected on the plan via X, describing the release as laying out the “big picture” of the initiative. He emphasized that the critical work now lies in the follow-up steps needed to translate the vision into concrete policy and implementation efforts.

Key takeaways

• The LDP Policy Research Council approved a forward-looking framework to integrate AI and on-chain finance, outlining use cases for autonomous AI-driven economic activity and on-chain payment settlements in Japan’s retail and wholesale sectors.
• The initiative places a spotlight on clarifying the legal status of yen-pegged stablecoins within Japan’s financial infrastructure, signaling a push to define digital currency instruments within existing regulatory boundaries.
• The plan positions Japan to seek regional leadership in secure, trusted on-chain payments, with potential collaboration and service provision to Asian partners that are economically entwined with Japan.
• Regulatory backdrop continues to evolve: Japan’s government earlier amended a law to classify crypto assets as financial instruments, following a period of consideration around guidelines that could enable crypto-backed exchange-traded funds.
• Industry dynamics in the domestic crypto market may be shifting toward consolidation, as evidenced by SBI Holdings’ indication of interest in acquiring a stake in Bitbank, a move with implications for market structure and regulatory oversight.

Policy framework for AI-enabled on-chain finance

The initiative represents a deliberate attempt to map a national blueprint for AI-enabled, blockchain-based financial infrastructure. By envisioning a system in which blockchain settlement mechanisms underwrite retail and wholesale transactions, and AI autonomously executes economic activities, the LDP aims to reduce friction in payments and broaden the scope of programmable finance. The emphasis on on-chain settlement is notable for potential implications across settlement latency, interoperability, and operator liability—areas that typically attract scrutiny from regulators and compliance teams as digital assets gain traction in mainstream finance.

The document also contemplates a clarified legal environment for yen-linked stablecoins. While not a full endorsement of any particular instrument, the emphasis on certainty around legal status is aimed at addressing risk vectors that concern banks, payment providers, and exchanges seeking to participate in a regulated ecosystem. In this context, the plan aligns with broader policy conversations about how digital currencies interface with traditional monetary frameworks and payment rails.

The leadership’s framing of the initiative as a collaborative path to “be chosen by AI” underscores Japan’s intention to position itself as a testing ground for secure, trusted on-chain operations. The aspirational tone reflects a governance approach that seeks to balance innovation with regulatory clarity—an essential consideration for financial institutions, technology providers, and market participants seeking clarity on permissible activities, licensing requirements, and cross-border compliance expectations.

As part of the broader regulatory landscape, observers may note that Japan has been methodically adjusting its stance on digital assets. In April, the government amended a law to classify crypto assets as financial instruments, following earlier signals about potential guideline changes that could enable crypto-linked exchange-traded funds (ETFs) in the near term. While the specific contours of any future ETFs remain under consideration, the trend signals a move toward formal recognition of digital asset instruments within Japan’s financial regulatory framework. For exchanges and asset managers, these developments—together with the LDP plan—could influence licensing trajectories, product approvals, and the scope of permissible client disclosures and risk controls.

Industry consolidation and market structure implications

Concurrent with the policy discourse, corporate activity within Japan’s crypto sector is shifting. On May 1, SBI Holdings disclosed that it was weighing a stake acquisition in Bitbank, one of the country’s digital-asset platforms. If negotiations advance and receive the necessary approvals, the move would constitute a notable consolidation: a major financial services player seeking to acquire or integrate a digital asset exchange. Market participants, incumbents, and regulators alike will be watching how such moves interact with the evolving regulatory regime—particularly regarding licensing, AML/KYC regimes, governance standards, and consumer protections for exchange users.

The consolidation narrative, set against a backdrop of regulatory clarity and a push for more sophisticated financial infrastructure, could influence competitive dynamics, capital allocation, and partner ecosystems for banks, payment processors, and other fintechs operating in Japan. It also raises questions for cross-border firms and foreign participants seeking to operate in Japan’s crypto market, underscoring the importance of aligned compliance programs, transparent governance practices, and robust risk management frameworks to navigate any shifts in market concentration.

Closing perspective

Japan’s LDP policy initiative marks a deliberate step toward integrating AI and blockchain into a formal financial infrastructure plan, with explicit attention to regulatory clarity around stablecoins and on-chain settlement. As the government advances this agenda, market participants should monitor the regulatory dialogue, licensing developments, and potential cross-border cooperation that could reshape the competitive landscape for digital assets and financial technology in Japan and the broader Asia-Pacific region.

Lolli launched automatic Bitcoin cashback for users who link eligible debit or credit cards, partnering with commerce network Kard.

Lolli announced on Tuesday that it has partnered with independent commerce media network Kard to launch card-linked Bitcoin cashback rewards for its more than 600,000 accounts.

Users who link eligible Visa or Mastercard debit or credit cards through the Lolli app automatically earn Bitcoin on qualifying purchases at thousands of merchants — including Dropbox, Hydro Flask, and Stanley 1913 — with no extensions, codes, or checkout steps required.

“Lolli’s audience is one of the most distinctive consumer cohorts in the rewards space,” said Kard CEO Ben Mackinnon. “We’re excited to power infrastructure that lets them earn bitcoin in the background of their everyday spending, and to give our merchants a meaningful new channel into that audience.” The move marks Lolli’s biggest product upgrade since its acquisition by Bitcoin venture studio Thesis last July.

Lolli Bitcoin cashback removes friction from earning rewards

Cards are linked through Plaid inside the Lolli app, with Bitcoin rewards from qualifying purchases sent automatically to the user’s Lolli wallet. Rewards can then be withdrawn via the Lightning Network or used within the broader Thesis Bitcoin stack, including spending through Bitrefill. The feature requires no browser extension and works on both online and in-person purchases at any participating merchant.

Thesis co-founder Matt Luongo said the partnership fulfils the original acquisition goal: “Our users link a card once, and bitcoin shows up in their wallet from spending they were already going to do.” Lolli has previously raised $28.3 million in total funding.

Kard’s commerce media network reaches over 47 million cardholders and uses first-party transaction data to match offers to spending patterns. As crypto.news documented in its best crypto cards guide, consumer appetite for crypto-linked payment products has grown steadily in 2026 alongside broader regulatory clarity.

Why card-linked rewards expand Bitcoin adoption

Most Bitcoin cashback products require users to either spend crypto directly or use a dedicated crypto-branded card. Lolli’s model asks users only to link an existing card and shop normally, with Bitcoin accumulating passively in the background. That design removes every barrier to Bitcoin acquisition for users who want exposure without managing wallets or changing spending habits.

The Bitcoin price at roughly $77,000 at time of writing means cashback earned today represents a real-time market acquisition, with the potential for appreciation over time.

Separately, Revolut’s launch of its first physical crypto card this week, as crypto.news reported, underlines the broader trend of fintech platforms competing to make Bitcoin and crypto rewards a standard feature of everyday consumer spending in 2026.

Ethereum dropped another 10.2% this week, with the ETH/BTC ratio sinking toward 0.0275, and market maker Wintermute is now flatly calling ETH “not the right asset for this macro” as yields and inflation grind higher.

According to a note shared via industry channels and summarized by WuBlockchain on X, Wintermute says Ethereum’s (ETH) latest 10.2% weekly slide continues a pattern of underperformance “across both spot and derivatives markets,” with the ETH/BTC ratio pressing 0.0275 as traders rotate away from smart-contract beta into safer corners of the crypto complex. The firm’s verdict is blunt: “ETH is not the right asset for this macro,” citing an environment of rising Treasury yields, renewed inflation concerns and a market that is rewarding hard-asset narratives and cashflow clarity over long-duration tech bets.

Wintermute’s macro read is that crypto is now trading more like a high-beta extension of equity and credit risk, and that the current regime—re-accelerating inflation prints, stickier real yields and crowded trades in AI and growth stocks—is hostile to assets whose payoff is far out on the horizon. Ethereum, whose core bull case rests on future fee growth from DeFi, real-world assets, and L2 activity, fits that “long duration” profile, and the lack of a decisive on-chain usage surge leaves it particularly vulnerable when discount rates move higher. Recent technical work has been pointing to a choppy, range-bound ETH with only “measured optimism” toward levels like $2,300, warning that bearish MACD and fragile support around the low-$2,000s could make the path higher messy at best.

On Bitcoin, Wintermute is hardly pounding the table either. The firm cautions that being outright long BTC at current levels is effectively a macro bet that institutional investors will step back into spot and ETF markets despite higher yields and a still-uncertain inflation trajectory—something it thinks may be “difficult” until markets fully digest the shifting backdrop and the AI trade shows signs of cooling. In earlier reports, Wintermute argued that AI-linked equities and tokens have been “continuously absorbing available market funds,” leaving crypto in “high-volatility, low-spot-demand price discovery” as U.S. selling and ETF outflows bite.

That view dovetails with the firm’s broader 2026 outlook, where it has already declared the classic four-year crypto cycle “over” and replaced by a regime dominated by institutional capital flows and product rails such as ETFs and digital asset trusts. In that framework, neither halving narratives nor incremental protocol upgrades are enough; what matters is whether ETF mandates broaden, whether big allocators decide to treat BTC as macro collateral again, and whether secondary-market and token-launch activity (“DAT activity”) actually picks up.

For now, Wintermute’s message is that crypto is stuck in an awkward macro cross-current: liquidity exists, but it’s choosing AI and equities; yields are rising, making long-duration crypto bets less attractive; and structural inflows into both BTC and ETH are muted. In that mix, ETH’s combination of duration, still-unproven fee growth and fading narrative momentum makes it, in their words, “not the right asset for this macro,” while even BTC longs are, in effect, fading the bond market and betting that institutional risk appetite turns back toward digital assets before something in traditional markets snaps.