"Stablecoins, digital alternatives to cash... Need to build common infrastructure" [BLS Tokyo 2025]

Japanese companies Densan System and Sumitomo Mitsui Financial Group (SMFG) have begun earnest efforts to establish a digital payment infrastructure centered on stablecoins. Both parties agreed that rather than pushing forward with individual initiatives, it is more important to first establish a common infrastructure based on industry-wide consensus.

Densan System is a technology company that operates a bill payment system connecting over 60,000 convenience stores and drugstores nationwide. Hiroyuki Kamata, Senior Executive Officer (SEO) of Densan System, stated, "As demand for traditional paper-based payments decreases, blockchain and stablecoins are emerging as new payment methods," adding, "Densan aims to accept this and build an infrastructure that is actually used by consumers."

SMFG is studying the entire range of digital currencies—including stablecoins, tokenized deposits, and central bank digital currencies (CBDC)—through its Digital Strategy Department. Hiromitsu Shimoirisa, SMFC team leader, remarked, "CBDC development in Japan is slow, and tokenized deposits are realistically difficult to implement due to excessive load on the banking IT network. At this point, stablecoins are the fastest means for issuance and widespread adoption."

Both companies have proposed several use cases for stablecoins: △instant micro-payments for freelancers and part-time workers △settlement of blog and creator earnings △retail payments △corporate payments and fund management, among others.

Kamata, SEO, emphasized, "Stablecoins are effective in environments where a large number of small-value transactions occur due to their low transaction fees," adding, "True digital transformation can only be achieved if stablecoins truly replace cash in everyday life." Shimoirisa, team leader, also said, "SMFG is currently working with security token (STO) platform operators to conduct pilot payments using stablecoins" and mentioned, "We are seeing rapid growth in actual demand from securities firms, large enterprises, and others."

Regarding the potential proliferation of multiple stablecoins in the future, both companies judged this to be an "inevitable trend." Kamata, SEO, said, "We are prepared to support a variety of stablecoin types," while Shimoirisa, team leader, remarked, "In the long term, bank-issued stablecoins will become central, but monopolies by a single issuer should be avoided. It is important to build infrastructure enabling mutual interoperability among banks."

Finally, Kamata, SEO, stated, "We want to collaborate with businesses that actually intend to utilize stablecoins," and added, "Our goal is to create a user experience that can even replace the psychological safety provided by cash." Shimoirisa, team leader, also emphasized, "It's difficult to pursue the stablecoin business alone," stating, "It needs to function as an infrastructure that enhances efficiency across society as a whole."