Binance forecasts that the digital asset market this year will see institutional investors enter in earnest and that digital assets will become established as practical payment methods beyond being simple investment targets.

Takeshi Chino (치노 타케시), head of Binance Japan, cited institutional entry, the spread of stablecoins and integration with artificial intelligence as key trends this year at the third Binance Blockchain Summit held on Feb. 11 in Seodaemun-gu, Seoul.

Chino said the global digital asset market in 2025 showed clear growth. Total market capitalisation at one point reached $3.13 trillion.

That is comparable to France's gross domestic product. It has since undergone a correction and is holding around $2.3 trillion, but is still functioning as a huge economic bloc.

Looking at market structure, bitcoin accounted for more than 50 percent of the total and remained the central pillar. A notable change is the growth of stablecoins.

Stablecoins are virtual assets pegged to the value of fiat currencies such as the dollar, simplifying bank transfers and currency exchange procedures to improve transaction efficiency.

Chino said, "Currently 90 percent of the stablecoin market is based on the U.S. dollar," and added, "If countries in the future invigorate stablecoins based on their own currencies, the structure in traditional finance where the dollar, euro and yen are used will be reproduced on blockchain as well."

He also explained why the Japanese government is encouraging yen-based stablecoins.

He said the focus is not simply a currency-hegemony competition aimed at increasing the yen's international influence, but on building essential infrastructure to foster the Web3 ecosystem. The government supports innovation while steering stable growth within a controllable regulatory framework.

A trend of companies holding digital assets as part of their asset portfolios has also become clear.

Known as Digital Asset Treasury, or DAT, the number of related listed companies rose to 142 as of October 2025 from just 4 in 2020.

The amount of digital assets they hold totals $137.3 billion. More companies are using bitcoin as a new tool for asset diversification beyond bonds and stocks.

Binance is focusing on localisation and broader adoption in line with these market changes.

Binance Japan, Binance's Japanese entity, has listed 65 tokens since its formal launch in August 2023, securing the largest number of listings in Japan.

It plans to increase that to 100 by the end of this year. Listing reviews in Japan are strict and take several months, but its strategy is to steadily expand the lineup to broaden investor choice.

In payments, it will strengthen cooperation with PayPay, Japan's largest QR payment operator.

Currently, users can check their PayPay balance in the Binance app and buy digital assets. In the future, Binance functions are set to be built into the PayPay app. That would allow users to encounter digital assets through the simple payment app they use in daily life, without complex transfer procedures.

Changes in Japan's regulatory environment are also notable. Japan has strictly regulated digital assets under the Payment Services Act since the 2014 Mt. Gox hacking incident. Initially it viewed digital assets only as payment means, but the system has recently been changing toward recognising their nature as financial products.

The biggest focus is tax reform. In Japan, digital asset income is currently classified as miscellaneous income and is taxed at up to 55 percent. But if it comes under the Financial Instruments and Exchange Act, it is highly likely to change to a single 20 percent tax rate, as with stocks. That would reduce the tax burden and is expected to accelerate investor inflows.

Regulations on stablecoin issuance have also been put in place. Japan has allowed not only banks but also funds transfer service providers and trust banks, among others, to issue stablecoins. Banks have greater freedom to issue but high barriers to entry, while funds transfer operators face constraints such as transfer limits but can enter more easily. Differentiated rules by issuer type have balanced innovation and risk management.

Chino emphasised "trust with regulators" as Japan's regulatory response know-how that other countries such as South Korea could refer to.

He said it is necessary to go beyond simply complying with legal provisions and to accurately understand what regulators actually worry about and what they expect. "Ongoing communication and building trust with regulators is the core of business," he advised.