Japan FinTech Observer #152

Welcome to the one hundred fifty-second edition of the Japan FinTech Observer.

Happy birthday to Emperor Naruhito 🎂

It's conference week again! If you would like to meet, you will most likely find us at the N.Avenue conference, the Credit Saison Blockchain Summit, the Yield Summit, and MoneyX. If you are coming to Tokyo for Japan FinTech Week, have an awesome stay!

Here is what we are going to cover this week:

• Venture Capital & Private Markets: Yuimedi secures JPY 400m to streamline medical data infrastructure with AI; SIGQ secures JPY 123m in Pre-Series A funding led by Mizuho and SMBC; NTT DOCOMO Ventures backs Bastion to bolster regulated stablecoin infrastructure; HiJoJo Partners secures JPY 1bn in Series B1, completes “mega-bank trifecta” with SMBC backing
• Insurance: Sompo Holdings lifts full-year outlook to record high as 3Q profit surges 47% on underwriting improvements; InsurTech Profile - OdysseyAI
• Banking: MUFG Bank taps Uzabase’s Speeda to power AI-driven "Proposal Data Lake" for Corporate Banking; Hokkoku Bank integrates core lending functions into proprietary 'IBPlatform' to automate operations; Yamato Credit Finance partners with Moneytree to digitize SME factoring
• Payments: Digital Garage, JCB, and Resona launch in-store stablecoin payment trial; Nudge launches "Entertainment x Fintech Consortium" with 36 major firms; Rakuten advances FinTech strategy with launch of AI-powered spending assistant on "Card Lite" app; Link Processing and Epos Card forge alliance to digitize B2B payments, targeting SME liquidity with new invoice-to-card service
• Economics: IMF backs further BOJ rate hikes to 1.5%, urges caution on proposed consumption tax holiday; JGB market shifts focus to ‘Sanaenomics’ reality, two BOJ hikes seen in 2026; Japan corporate bankruptcies hit 13-year January high as wage hikes and inflation squeeze SME
• Digital Assets: Japan’s financial giants unite for ‘native’ security token pilot; SBI Holdings breaks new ground with JPY 10bn security token bond, debuts as first listing on ODX’s ‘START’ platform; SBI Digital Markets taps global music royalties boom with record USD 30m IP-backed bond; Metaplanet CEO fires back at critics, defending bitcoin treasury strategy and financial transparency
• The Last Word: The Evolution of Alternative Data and AI Integration

Venture Capital & Private Markets

• Yuimedi secures JPY 400m to streamline medical data infrastructure with AI: Yuimedi, a health-tech startup specializing in the standardization and utilization of medical data, has raised 400 million yen (approx. $2.6 million) in a fresh funding round; the capital injection is aimed at accelerating the deployment of its AI-driven data infrastructure and expanding its footprint in both the Japanese and U.S. markets; the round was led by DG Daiwa Ventures, with significant new participation from Sumitomo Mitsui Trust Bank, HearstLab, and SMBC Venture Capital; existing investors Chiba Dojo, Incubate Fund, and D4V also participated, signaling continued confidence from early backers
• SIGQ secures JPY 123m in Pre-Series A funding led by Mizuho and SMBC: SIGQ, a developer of autonomous AI solutions for IT operations, has raised a total of 123 million yen (approx. USD $820,000) in the first close of its Pre-Series A funding round; the financing will accelerate the Go-to-Market (GTM) strategy for its flagship product, "Incident Lake," specifically targeting the enterprise sector; the round represents a hybrid financing structure comprising 93 million yen in equity via J-KISS stock acquisition rights and 30 million yen in debt financing; the equity portion was backed by major banking venture capital firms Mizuho Capital and SMBC Venture Capital; they were joined by a syndicate of nine angel investors, including current and former executives from leading Japanese tech growth companies such as PLAID, Money Forward, and PKSHA Technology
• NTT DOCOMO Ventures backs Bastion to bolster regulated stablecoin infrastructure: NTT DOCOMO Ventures, the investment arm of Japan’s leading mobile operator, has made a strategic investment in Bastion Platforms, a New York-based provider of regulated stablecoin infrastructure; the deal signals the telecommunications giant's deepening interest in integrating digital asset technologies into enterprise finance and consumer payments; as global financial institutions increasingly look to stablecoins for efficient cross-border value transfer, Bastion has positioned itself as a compliance-first solution for the enterprise sector
• HiJoJo Partners secures JPY 1bn in Series B1, completes “mega-bank trifecta” with SMBC backing: HiJoJo Partners, an independent asset management firm specializing in democratizing access to global unicorn investments for Japanese investors, has completed its Series B1 funding round; the firm raised approximately 1 billion yen via a third-party allotment, bringing its cumulative equity financing since inception to roughly 2.8 billion yen; this latest capital injection is strategically significant, marking a consolidation of support from Japan's traditional financial heavyweights; with the participation of SMBC Venture Capital in this round, HiJoJo Partners has now established capital ties with group entities representing all three of Japan’s “mega-banks”—Mizuho Financial Group, Mitsubishi UFJ Financial Group, and now Sumitomo Mitsui Financial Group

Other

• IPO-grade corporate governance policy framework: for this article, we have applied the recently updated "Preparation Guidebook for Initial Public Offerings (IPOs)", published by the Japanese Institute of Certified Public Accountants (JICPA), to generate an IPO-grade corporate governance policy framework that startups need to complete before conducting an accounting audit

Insurance

• Sompo Holdings lifts full-year outlook to record high as 3Q profit surges 47% on underwriting improvements: Sompo Holdings delivered a robust set of third-quarter results for fiscal year 2025, posting a sharp increase in profitability driven by improved underwriting margins in its domestic property and casualty (P&C) business and sustained growth in overseas operations; buoyed by lower-than-expected natural catastrophe losses and strong investment returns, the insurer has revised its full-year adjusted consolidated profit guidance upward by ¥40.0 billion to a record-breaking ¥480.0 billion
• InsurTech Profile - OdysseyAI: the intersection of generative artificial intelligence and highly regulated financial services represents one of the most critical and heavily contested growth vectors in the contemporary global enterprise software market; within this rapidly evolving paradigm, OdysseyAI, a specialized technology enterprise established in 2024 and headquartered in Tokyo, Japan, has emerged as a deeply focused entity operating at the nexus of artificial intelligence and insurance compliance; operating from its corporate headquarters situated in the Shibuya district of Tokyo, the firm explicitly positions itself as the architect and developer of Japan’s inaugural "Agentic AI" platform engineered specifically for the distinct operational and regulatory requirements of the domestic insurance sector

Banking

• MUFG Bank taps Uzabase’s Speeda to power AI-driven "Proposal Data Lake" for Corporate Banking: in a move to accelerate digital transformation within its corporate banking division, Mitsubishi UFJ Bank has secured an agreement with business intelligence platform Speeda, operated by Uzabase; the partnership involves the integration of Speeda’s proprietary economic data into MUFG Bank’s newly constructed "Proposal Data Lake," a system designed to streamline and elevate the creation of client proposals through artificial intelligence
• Hokkoku Bank integrates core lending functions into proprietary 'IBPlatform' to automate operations: Hokkoku Bank has announced the full-scale launch of integrated loan approval and execution capabilities within its proprietary "IBPlatform," marking a significant step in the regional lender’s digital transformation strategy; moving beyond the platform's initial scope as a Customer Relationship Management tool, the new update integrates directly with the bank's core banking system; this expansion allows for the seamless consolidation of sales, administrative, and accounting processes that were previously siloed
• Yamato Credit Finance partners with Moneytree to digitize SME factoring: Yamato Credit Finance, the financial subsidiary of the Yamato Transport group, has adopted the "Moneytree Verify" solution for its two-party factoring services; the integration marks a significant shift in the non-bank lending sector, moving away from static, paper-based credit assessments toward real-time, data-driven monitoring

Payments

• Digital Garage, JCB, and Resona launch in-store stablecoin payment trial: a consortium led by Digital Garage, alongside payment heavyweight JCB and Resona Holdings, announced the commencement of a proof-of-concept for stablecoin payments in physical stores, a move towards bridging decentralized finance (DeFi) with traditional retail infrastructure; starting February 24, 2026, the pilot program will test the viability of using cryptocurrency for everyday transactions at a brick-and-mortar location in Shibuya, utilizing both US Dollar-pegged (USDC) and Japanese Yen-pegged (JPYC) stablecoins
• Nudge launches "Entertainment x Fintech Consortium" with 36 major firms: Nudge, the Tokyo-based challenger in the credit card and FinTech space, has convened the inaugural meeting of the "Entertainment x Fintech Consortium," marking a significant step toward integrating financial infrastructure with the entertainment sector; the kickoff event gathered 36 leading companies, exceeding the organizer's initial recruitment targets; the consortium represents a strategic effort to foster "open innovation" by dismantling the traditional barriers between finance and the arts
• Rakuten advances FinTech strategy with launch of AI-powered spending assistant on "Card Lite" app: Rakuten Group and its FinTech subsidiary, Rakuten Card, have announced the integration of a proprietary AI agent into the Rakuten Card Lite app; the launch marks the latest step in the company’s "AI-nization" initiative, a strategic push to embed artificial intelligence across its business portfolio to drive growth and user engagement; the new tool, available on both iOS and Android platforms, is designed to leverage robust transaction data to provide a personalized financial overview for cardholders; functioning within the English-language version of the app, the AI agent allows users to query their spending habits through a conversational interface in either English or Japanese
• Link Processing and Epos Card forge alliance to digitize B2B payments, targeting SME liquidity with new invoice-to-card service: Link Processing, a subsidiary of Infcurion, has entered a business alliance with credit card issuer Epos Card to address the liquidity constraints and digital stagnation facing Japan’s small and medium-sized enterprises (SMEs); the partnership will offer a "Corporate Invoice Card Payment" service to Epos Card’s corporate holders, a solution designed to shift traditional bank transfer payments onto credit card networks, thereby extending working capital buffers for businesses

Economics

• IMF backs further BOJ rate hikes to 1.5%, urges caution on proposed consumption tax holiday: the International Monetary Fund has signaled strong support for the Bank of Japan’s ongoing policy normalization, forecasting a path toward a neutral interest rate of 1.5% by 2027, while simultaneously warning Tokyo against eroding fiscal discipline through broad tax cuts; in a press briefing following the 2026 Article IV Consultation, IMF Mission Chief for Japan Rahul Anand described the Japanese economy as showing "impressive resilience" in the face of global uncertainty and trade headwinds
• JGB market shifts focus to ‘Sanaenomics’ reality, two BOJ hikes seen in 2026: after a turbulent start to the year marked by a 27-year high in bond yields, the Japanese government bond market is beginning to stabilize as investors digest the realities of Prime Minister Sanae Takaichi’s resounding election victory; according to a new report from Sony Financial Group, the market has moved past initial fears of unchecked fiscal expansion and is now pricing in a steady ascent in interest rates driven by the administration’s "high-pressure" economic strategy
• Japan corporate bankruptcies hit 13-year January high as wage hikes and inflation squeeze SMEs: according to data provided in the Tokyo Shoko Research report for January 2026, Japanese corporate insolvencies began 2026 on a turbulent note; the total number of bankruptcies in January surged to 887 cases, marking a 5.59% year-on-year increase and the highest level for the month since 2013; while total liabilities dipped slightly by 1.34% to 119.8 billion yen ($780 million), the data reveals a shifting landscape where small and medium-sized enterprises (SMEs) are increasingly buckling under the dual pressures of persistent inflation and increasing labor costs

Digital Assets

• Japan’s financial giants unite for ‘native’ security token pilot: the Financial Services Agency has authorized a landmark pilot program involving the country’s top five financial institutions; the initiative, part of the FSA's "Payment Innovation Project", aims to test the viability of blockchain technology for the settlement of traditional book-entry securities, including government bonds and listed stocks; the pilot brings together a coalition of Japan’s financial heavyweights: Nomura Securities and Daiwa Securities, alongside the three megabanks—Mizuho Financial Group, Mitsubishi UFJ Financial Group (MUFG), and Sumitomo Mitsui Financial Group (SMFG); the collaboration marks a rare unified effort to address the structural inefficiencies of the legacy financial system
• SBI Holdings breaks new ground with JPY 10bn security token bond, debuts as first listing on ODX’s ‘START’ platform: SBI Securities has announced the upcoming sale of SBI Holdings’ inaugural security token bond, a landmark issuance valued at 10 billion yen; dubbed the "SBI START Bond," the offering represents the very first asset to be traded on the "START" proprietary trading system (PTS) operated by the Osaka Digital Exchange; the 3-year unsecured bond marks SBI Holdings' entry into the ST bond market as an issuer; while SBI Securities has been active in the space since executing Japan's first general investor STO in April 2021, this issuance utilizes the "ibet for Fin" blockchain consortium led by BOOSTRY; this infrastructure allows for the digital completion of business processes ranging from issuance to redemption, moving away from the traditional management via the Japan Securities Depository Center (JASDEC)
• SBI Digital Markets taps global music royalties boom with record USD 30m IP-backed bond: SBIDM has cemented its foothold in the burgeoning sector of Real-World Asset securitization, announcing the successful closure of Asia's largest music Intellectual Property deal for 2025; the transaction, valued at US$30 million, involves the issuance of bonds backed by a new music album and a portfolio of performing rights; the deal, finalized in early 2026, represents the Singapore-licensed firm's third commercialization of tokenized assets in a six-month period; it follows SBIDM's recent expansion into alternative asset classes, including a luxury wine RWA project launched in Korea and Thailand last September, and a tokenized money market fund introduced in Europe in May
• Metaplanet CEO fires back at critics, defending bitcoin treasury strategy and financial transparency: in a sharp rebuke aimed at anonymous detractors, Metaplanet CEO Simon Gerovich has issued a comprehensive defense of the company’s Bitcoin accumulation strategy and corporate governance, rejecting claims of opaque disclosure as "inflammatory and factually incorrect"; addressing a wave of recent online criticism, Gerovich emphasized that while it is easy for anonymous accounts to ignite controversy without consequence, Metaplanet remains committed to public accountability; the statement systematically dismantled allegations regarding the company’s disclosures, trading timing, and financial health

The Last Word: The Evolution of Alternative Data and AI Integration

The release of the 4th annual Alternative Data Factbook, produced by the Japan Alternative Data Accelerator Association (JADAA) and SOMPO Institute Plus, confirms that the market has successfully navigated its initial volatility. Survey participants have moved decisively past the "pandemic surge"—a period characterized by reactive, uncritical data acquisition—into a phase of structural and persistent demand. In 2025, the strategic context shifted towards the sophisticated integration of data into institutional workflows. This is a maturation phase where technological synergy, rather than volume alone, dictates market leadership.

The thematic analysis of this year’s findings reveals a critical shift in momentum. While 80% of institutional respondents now possess direct experience with alternative data, the era of "growth at any cost" has ended. The market has transitioned toward "strategic differentiation," where the value of a dataset is measured by its ability to provide a unique edge in an increasingly efficient environment.

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