Japan’s Web3 Map
Updated June 2024.
Japan’s Web3 scene has emerged as one of Asia’s most promising. Propelling it ahead are its deep-thinking entrepreneurs, steady pro-crypto public policy advanced by Prime Minister Kishida’s government, a cohesive Web3 community in Tokyo and Fukuoka, increasing investment in Web3 by Japanese corporations, Japanese founders’ growing global orientation, a rich scientific pool to tap by decentralized science, having the worlds-4th-largest economy, and Japan’s traditionally strong intellectual property (IP) content.
As external validation, investor interest is pouring in. Foreign Web3 projects are eager to enter Japan’s market for adoption and partnerships as well. On the finance side of Web3, Japan’s reputation as an effective regulator and ethical businesses gives it a chance to become the “world’s vault” for digital assets as well. Japan’s regulations shined in 2021 when it protected consumers from FTX, as FTX’s Japan affiliate promptly returned all assets to consumers given the regulation that mandated it not use its consumers’ deposits for other reasons.
Speaking of policy, Japan’s policy environment for Web3 could rank among the world’s most-improved in recent years. The Ministry of Economy, Trade and Industry (METI) recently voted to allow venture capital funds to invest directly in cryptoassets, which could stimulate investment in Web3 startups within Japan and enable Web3 projects to flourish in Japan rather than moving abroad. METI’s policy proposal moved to the national legislature (the Diet) in June 2024.
The Japanese government has also eased the taxation on virtual assets held by corporations. Previously, the high tax rates on crypto assets held by Japanese Web3 companies led some Japanese Web3 companies to relocate to jurisdictions with more favorable tax regimes, such as Singapore and Switzerland. Reformed tax law could change this for the better and prevent Web3 brain drain.
These policy moves to facilitate corporate cryptoasset holdings could advance Japan’s Web3 market. NTT DoCoMo and SBI Holdings have announced sizable Web3 application investments totaling 600 billion yen (approx. USD 3.7 billion) and 100 billion yen (approx. USD 623 million) respectively. Equally as promising, the largest pension fund in the world, Japan’s Government Pension Investment Fund (GPIF), has shown interest in Bitcoin investments.
Japan remains an enigmatic market, especially given the language barrier and limited projects with global reach. Few have mapped the Web3 landscape…until now.
Venture capitalists
Decima: Targeting projects with listed tokens and the incubation of Japan-based ventures, Decima has notable general partners including MZ Cryptos, gumi, SBI Holdings and Animoca Brands. Website.
DoubleJump Ventures: A Tokyo-based gaming-focused venture capital firm. Website.
Fracton Ventures: A Tokyo-based network of experts, investors and developers who have a strong interest in DAOs as corporations. Fracton gives support to We3 ventures and has run two successful incubation programmes, supporting a total of 18 projects. Has strong links with the city of Fukuoka. Several of its members invest in Web3 ventures via Singapore-based Next Web Capital. Website.
GMJP: The personal angel fund of Joi Ito, a leading Japanese technologist and founder of publicly-listed company Digital Garage. Has invested in decentralized film creation platform Shibuya, remote hiring firm Toku, and DeSci project LabDAO.
Hyperithm: Based in Tokyo and Seoul, is active in quant trading and venture investment. Portfolio companies include Layer 1 & 2 protocols, gaming companies, decentralized finance, JPYC stablecoin, entertainment, and crypto community ventures. Website.
JAFCO: A Tokyo-based venture and buyout fund invested in notable fintech ventures including LayerX, Nayuta, Liquid, and Tech Bureau. Website.
MZ Web3 Fund: The crypto fund of famed Japanese entrepreneur and space tourist Tomo Maezawa.Notable portfolio investments have included Layer 2 INTMAX, crypto on-ramp Transak, and crypto payment rail company SlashFi. Website.
Neoclassical Capital: Focusing on Japan and Korean opportunities, this is run by former BlockTower Capital fund executives Steve Lee and Michael Bucella. Website.
Decentralized Science
Merito Network: Japan’s first decentralized science venture, generating funding for Japanese scientists. Is digitizing sponsored research agreements in 2024 and will tokenize them on Ethereum in 2025. Website.
LabDAO: A biotech research platform providing tools and infrastructure for computational life science research. While based in Switzerland, has received investment from Tokyo-based GMJP fund.
Web3 Developer Shops
Crypto Garage: A regulated crypto asset financial services company with B2B offerings. Is a subsidiary of publicly-listed Digital Garage. It is providing Working on the crypto custody solutions to banks, such as Fukuoka’s Minna no Ginko.
Curvegrid: Based in Tokyo since 2017 by two reputable expat technologists, it builds custom blockchain projects for independent developers and enterprise companies to rapidly prototype and build blockchain applications. Website.
Solidity House: A remote and on-site smart contract development boot camp. Can produce NFT memberships. Is based at a thriving co-living developer community in Saga prefecture in western Japan. Provides Web3 training to clients. Website.
Notable Web3 projects:
Nayuta: A Fukuoka-based crypto wallet company, specialized in the Bitcoin Lightning network, founded by a pioneer in the Japanese cryptofinance space, Ken Kurimoto. Investors include JAFCO Group and U.S.-based Fulgur Ventures.
Toku: A remote hiring firm making human resources easier for startups and tech companies. The company offers token payroll, token grant administration, and employment and tax compliance services, and payroll services tailored to the needs of DAOs.
LasTrust: An application development platform that requires no back-end coding, is compatible with other smart contracts. It enables businesses to build and deploy decentralized apps (DApp) without in-house blockchain software developers.
Startale Labs: The Web3 software development studio building on the Astar zkEVM, a performant ZK-powered Layer 2 (L2) rollup built with Polygon CDK and the first chain fully integrated with the Polygon AggLayer. Website.
INTMAX: An Ethereum Layer 2 zkRollup project that started in Tokyo yet expanded to Switzerland. Website.
Stablecoins
JPYC: The most well-known stablecoin pegged to the Japanese yen. Investors include Headline Asia, Circle Ventures, Asteria, and i-nest capital. Deck here.
USDC: Circle, the issuer of USDC, is expanding the distribution of USDC in Japan in partnership with SBI Holdings.
Web3 Gaming Projects:
Square Enix: A longtime traditional video game publisher and entertainment conglomerate, it has released role-playing game franchises, such as Final Fantasy, Dragon Quest, and Kingdom Hearts. It has branched out into Web3 games. Website.
Seamoon Protocol: A multi-chain digital gaming ecosystem concept offered by DM2C Studio combining proprietary crypto assets such as the future release of DM2P token. Website.
Oasys: This company delivers a game-centric architecture built for mass adoption thanks to its gasless, fast-play experience and intuitive UX. We are working to provide unique experiences enabled by blockchain technology, such as immutable battle records and user award systems through cross-game NFTs. Website.
gumi: In the Web3 space, gumi (website) has built OSHI, a new fan activity platform project based on the cryptocurrency OSHI. Gumi also has its own corporate venture capital fund, gumi Cryptos.
Crypto Use Cases:
SokoLife: This company offers DAO services to governments, such as with Shiwa city in northern Japan. SokoLife also sells DAO membership services to temples and shrines. Website.
Furusato DAO: Shiwa’s “Help 2 Earn” project uses tokens to pay garbage collectors. Its leaders call it a way to open governments, reduce bureaucracy, require less manpower, and reduce expenditures. Project deck.
Town of Yubari: Located in the far north prefecture of Hokkaido, city officials have built a Melon-based NFT project.
Yamakoshi DAO: Based in the prefecture Niigata northwest of Tokyo, this gives membership NFTs to those interested in supporting the rural communities of Yamakoshi city.
SakeBaro: Non-fungible tokens (NFTs) function as membership cards to enter SakeBaro’s two speakeasy spots in Tokyo. Instagram.
Mercoin: The cryptoasset and blockchain side of Japanese large tech company Mercari. This unit makes it easier to use financial services within Mercari, such as by allowing users to receive payment for Mercari sales in bitcoin and providing a single wallet function that incorporates credit, cryptoassets, and asset management features as well. Website.
Crypto Exchanges
Below is a list of reputable crypto exchanges in Japan; it’s not an exhaustive list. A self-regulatory organization approved by the Japanese government, the Japanese Virtual Currency Exchange Association (JVCEA), manages token listings through a white/green list system.
BitBank
CoinCheck
BitFlyer
SBI Virtual Currency
Web3 Analytics
Messari: a U.S.-based crypto data research company, has recently entered the Japanese market.
Hash Hub: A crypto research entity from Japan.
Next Finance Tech: A Japan-based research entity that has becoming increasingly active.
Electric Capital: The U.S. venture capital firm with a strong research arm has a representative in Tokyo.
Pro-Web3 Legislators:
Takuya Hirai: Member of the House of Representatives, Former Minister for Digital Transformation, and Minister in charge of Information Technology Policy.
Akihisa Shiozaki: Member of the House of Representatives and one of Japan’s leading policy voices on digital issues, including Web3 and artificial intelligence. Currently also serving as Parlamentary Vice-Minister of the Ministry of Health, Labour and Welfare.
Masaaki Taira: Member of the House of Representatives and LDP Web3 Project Team Chairperson, Taira has distributed Taira-kun SBT (a soulbound token), a membership card for his supporters.
This Financial Services Agency policymaker’s summary was helpful to see the goals of the LDP Web3 Project Team as well as this private summary by Japan fintech expert Norbert Gehrke.
Event Spaces
Centrum: A Web3 community space near Shibuya scramble crossing. Website.
PacificHub: A hub for both Japanese and international companies near Tokyo Tower. Sponsored by crypto companies Oasys, Immutable, and Infinity Ventures Crypto.
Web3-Forward Cities
Fukuoka: Known for its vibrant tech start-up scene, Fukuoka often hosts Web3-focused events, such as this Web3 Pitch event and a Fukuoka DAO Camp with A-Star network. Fukuoka is also the home of Minna no Ginko, a neobank aiming to become the first Japanese bank to offer digital asset custody.
Osaka: Reportedly aiming to become the DeFi capital of Japan, and a host of Ethereum’s DevCon in 2019, Osaka has generated buzz, especially after the Osaka Digital Exchange has offered a security token exchange.
Crypto Conferences:
IVS Crypto: Takes place in early July, usually in Kyoto.
TEAMZ Summit 2024: An April conference in Tokyo. Website here.
WebX: Taking place August 28–29, 2024. Website here.
ETH Tokyo: Takes place in April in Tokyo.
Liberal Democratic Party (LDP) Web3 Project Team Working Group
Hironori Inagaki, Nishimura & Asahi
Tsutomu Endo, Nagashima Ohno & Tsunematsu
Ken Kawai, Anderson Mori & Tomotsune
Keiji Tonomura, Nagashima Ohno & Tsunematsu
Kaku Hirao, Nishimura & Asahi
Masafumi Masuda, Mori Hamada & Matsumoto
Ryo Matsukura, Attorney at Law
Masataka Asahi, Attorney at Law
Jun Mukoyama
This list remains a work in progress. Updates are welcome. And it’s provided for informational purposes only. It’s not investment advice. Hope you enjoyed.
