Japan accelerates Web3 growth with startup funding and stablecoin integration

Prime Minister Sanae Takaichi used a video address at WebX 2026 in Tokyo to reaffirm the government’s commitment to expanding the domestic Web3 ecosystem. She linked the sector’s development to the Comprehensive Startup Support Package, which aims to raise annual startup investment to about 10 trillion yen by fiscal 2027 and includes increased capital from government‑backed funds, regulatory relief for young firms and a proposed 20 % tax rate on crypto gains expected to take effect around 2028.

The WebX conference highlighted a shift in Japan’s Web3 strategy toward institutional use cases. Exhibitors and sessions focused on yen‑denominated stablecoins such as JPYC and JPYSC, tokenized finance and participation from legacy banks and financial groups, notably SBI Holdings, bitFlyer and bitbank. The event’s atmosphere suggested a move away from speculative crypto activities toward regulated, stablecoin‑based payment and settlement infrastructure, positioning Japan as a potential leader in integrating traditional finance with blockchain technology.