# What It Takes to Make Digital Assets Trusted in Japan | Tatsuya Yamada & Kartik Talwar, Pragma Tokyo

- Speakers: [Kartik Talwar](https://streameth.org/speakers/kartik-talwar)
- Channel: [ETHGlobal](https://streameth.org/ethglobal)
- Date: 2026-10-26
- Duration: 22:03
- Topics: ETHGlobal, Pragma Tokyo 2026, Pragma Tokyo, Tokyo, Japan, 2026, Tatsuya Yamada, Kartik Talwar, Rakuten Wallet, Rakuten, digital assets, crypto wallet, spot trading, Japan crypto regulation, crypto tax reform, crypto ETF, stablecoins, digital payments, merchant payments, real time settlement, crypto brokerage, financial services, loyalty rewards, AI wallet, tokenized assets, real world assets, Science & Technology
- Watch: https://streameth.org/watch/yt-BaWOGpnOCOo
- YouTube: https://www.youtube.com/watch?v=BaWOGpnOCOo

## Description

Tatsuya Yamada, President of Rakuten Wallet, joins ETHGlobal Co-founder Kartik Talwar to discuss how digital assets can earn trust in Japan. Yamada explains Rakuten’s dual mission: give customers access to crypto as an investment and build payment experiences. He reflects on closing a web3 wallet, shifting toward spot trading, and responding to three user priorities: a simple interface, a trusted trading environment, and reliable information. The discussion also covers stablecoins, brokerage regulation, crypto ETFs, and Japan’s planned tax reforms.

The conversation shows that consumers care less about blockchain mechanics than useful services. For merchants, stablecoins can reduce card fees and shorten settlement from weeks to real time. A unified Rakuten account could connect banking, securities, payments, credit cards, and crypto. AI may personalize wallet guidance and automate transactions. Yamada expects clearer regulation and a lower 20 percent tax rate to expand participation, while advising founders to build trusted products that fit Japan’s changing financial rules.

00:00 Introduction and Rakuten Wallet Strategy
01:08 Rakuten’s Entry Into Digital Assets
02:06 Bringing Crypto to Mainstream Users
03:05 Why Rakuten Shifted From Web3 Wallets
04:28 Spot Trading Product Direction
05:40 What Users Want From a Crypto Platform
06:25 Stablecoins and Digital Payments
07:39 Third-Party Versus Rakuten Stablecoins
08:15 Japan’s New Brokerage Regulation
09:42 Crypto as a Financial Product
10:27 Tax Reform and Crypto ETFs
12:03 Designing Wallets Without Blockchain Friction
13:11 Loyalty Rewards, Trading, and Payments
14:48 Lower Merchant Costs and Faster Settlement
17:04 AI-Powered Wallet Assistance
18:49 Tokenized Assets and Financial Institutions
19:53 One Account Across Financial Services
20:38 Opportunities for Builders in Japan

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🇯🇵 *Pragma Tokyo 2026*
Pragma Tokyo 2026 was held on September 25th at the Toranomon Hills Forum in Tokyo, Japan and was an in-person summit for builders and leaders in the web3 ecosystem. Watch the full Pragma Tokyo 2026 YouTube Playlist here: https://www.youtube.com/playlist?list=PLT7ZDw43Z98U

ETHGlobal's Pragma series takes place in cities around the world, and is designed to be a different kind of event. Pragma is a one-stage conference with founders-only on stage, bringing together a small group of curated attendees and speakers to discuss the future of web3 and reflect on the past. 

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✅ Follow Rakuten Wallet
X: https://x.com/Rakuten_Wallet

✅ Follow Kartik Talwar
X: https://x.com/kartiktalwar

✅ Follow ETHGlobal
X: https://x.com/ETHGlobal​
Warpcast: https://warpcast.com/ethglobal
Website: https://ethglobal.com
YouTube: https://www.youtube.com/@UCfF9ZO8Ug4xk_AJd4aeT5HA 

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## Transcript

This will be our penultimate fireside chat for today. And for this conversation, I would like to invite Mr. Tatsuya Yamada, President of Rakuten Wallet. We will talk about the capabilities of consumer crypto wallets and all areas of their application in Japan. And to have this conversation and take advantage of this incredible opportunity, welcome Mr. Yamada to the stage. Please greet him with loud applause. Mr. Yamada, I am incredibly happy to be speaking with you today. And I would like to start by helping our audience understand what made Rakuten enter the crypto ecosystem. And if you can shed some light on the broader strategy behind creating this wallet, we'd love to hear it. Well, going back to your question, 6, 7, 9 years ago, the owner of Rakuten, Mikitani, decided to enter the digital market. They wanted to issue a stablecoin, like Rakuten coins. Because other companies like Facebook were planning to issue their own coins, right? Like... I mean, the times of Libra, back then... Yes, yes, yes, yes. Back then, everyone was thinking about issuing their own coins, right? So, Rakuten Wallet has two main tasks. The first is to provide Rakuten users with a new digital payment experience. Another is to give Rakuten users access to cryptocurrency as a new asset class. We have these two goals. Tell me, was this something users asked for, seeing what was happening in the crypto world, or did you feel like you had to offer it because the world was moving in that direction and you wanted to create a retail experience for Rakuten users for Rakuten users ? What exactly prompted you to offer this as a bigger opportunity for consumers? Yes, actually, Rakuten has a huge customer base. And cryptocurrency for them is something new, and it's still in the early stages, because they still don't understand what crypto is, right? But it's time for...... people in Japan, because next year crypto will become a financial product financial product . We are counting on it. And this is a good time to expand our customer base. Surprisingly. Earlier this year, Rakuten closed its standalone Web3 closed its standalone Web3 wallet and you started focusing more on the spot trading market. What led to this ? What were your initial assumptions about people wanting to hold crypto assets themselves, what has changed now, what conclusions have you drawn, and why? Yes, three years ago everyone was talking about Web3, right ? Back then, we expected Web3 to become a kind of new wave. So we organized a Web3 organized a Web3 wallet. We expected the rapid growth of the gaming and metaverse markets, and believed that there would be a high demand for a platform like a wallet. That's why we released the Web3 why we released the Web3 wallet. However, it takes more time to , you know, develop this wallet. And also to train users. At the same time, many of our clients have shown interest in trading cryptocurrency as a financial product financial product . The market was showing a good trend, which is why many people were constantly following it. Therefore, we decided to focus on providing a trading platform. So what does this mean for product development in the future? Does this mean you will offer all the features of most exchanges, or will it be spot trading only? How do you plan to expand your wallet to expand your wallet ? You know, of course, we have two types of wallets: for payments and for trading. In the past, we focused more on trade. Yes. Do you plan to develop a full-fledged brokerage business, or is it just easier access to some assets, and more experienced users will still turn to other exchanges, using Rakuten Wallet only for basic transactions? Rakuten Wallet simply provides a trading experience, and most Rakuten users don't know how to use digital assets for payment, right? Therefore, right now, we at Rakuten Wallet are focused solely on providing a trading platform. Yes. What have been the most common user requests since you focused on spot trading, and what do they like? What do they want more? I would like to hear how users perceive this. From time to time, I talk to clients and they highlight three main points. main points. First, it is a simple interface or a new work experience. work experience. Secondly, these are reliable tokens for trading cryptocurrencies. The third is access to quality information for customers that helps them make decisions, right? These are, in fact, the three main demands they make of us. Perfectly. I would really like to understand how you see the role of payments in this process? Is spot trading the same as supporting payments and stablecoins, or is it a different category? How do you combine the overall Rakuten experience with the crypto direction? You know, stablecoins are coming to Japan this year, right? Many players around the world are using stablecoins for payments and asset transfers, and the same trend is being observed in Japan . Regulation of this issue began two years ago. So only a few companies started issuing their own coins. This is a good trend that paves the way for supporting blockchain finance. Rakuten Group is also considering creating a new digital payment platform. And yes, we are planning to release a stablecoin to release a stablecoin . So you mean you want to launch your own coin, integrate others, or will it be both? What exciting opportunities does this open up for Rakuten? We have many options. Of course, you can connect to other ecosystems using stablecoins issued by third-party companies, such as USDC and others. And for our ecosystems in the long term, I think it's more profitable to work with our own coin. How has regulation changed the situation in general, because we see, and other speakers today talked about it, that Japanese regulators have brought significant clarity. They make it easier for you to enter this market, and, in addition , stablecoins are becoming increasingly popular. What do you think this means for Japanese industry more broadly ? Is this good? Do n't you think this would create too much confusion for users? Or maybe it is necessary maybe it is necessary ? What are the positive and negative aspects of these changes? In addition, in June of this year, regulation of brokerage activities came into effect. This is a good opportunity for everyone, especially Rakuten, to expand their customer base. For example, Rakuten Group includes Rakuten Securities. They have a huge number of investor accounts. This is a good time to offer crypto assets to their clients. Ahem. And these clients are businesses? Yes, yes, yes. Of course. So we will ask Rakuten Securities and our other subsidiaries to introduce our service to their clients. This is, in a way, a huge number of possibilities. Also , as I just mentioned earlier, the regulation will change in June- will change in June- July 2027. And that's when it will become legal, or do you expect that? Legally, because they passed these new changes in parliament last... I think it was March. May or so, yes. Therefore, the regulator must change the regulatory framework within one year. We expected this, and it's already planned, I think. Oh, this is great news, because it will allow everyone to enter the market and offer very interesting products. Ahem. Yes, and besides, I have to change the regulation in July next year. And taxation will also change in January 2028 . For the non-Japanese present, could you describe what the difference in taxation will be compared to what was before? Now we have to pay a maximum of 55% tax on capital gains and other income. And the change involves 20%. It used to be 20%, which means the same rate as for other financial products. And that's kind of good for investors. Today, no one wants to trade and make a profit because 55% is taken away, right? That's why this is a good opportunity, because many investors are interested in trading cryptocurrency. However, taxation is one of the problems associated with cryptocurrency trading. So yes , that will change. Uh-huh. Is this... What will be the tax rate after the changes? So from 55%, to what number will it decrease? Yes, that's 20%. 20%? Oh, of course. 20% is 20%? Oh, of course. 20% is ... Of... Which is equal to the rate for stocks. January 2028. Oh, okay. And is this 20% how stocks are taxed in Japan? Yes. Good. So, it becomes... Good. So, it becomes... yeah. Yes, at the same time as the ETF, it is also 2028. January. January, yes. This is very close. How many, 14 months? Hmm How many, 14 months? Hmm . When you think about creating a wallet for your users, do you think they need to know about blockchain, or do you think the best experience is to just execute a transaction execute a transaction without going into technical details? What exactly makes a wallet good quality? So, audience, when I started this business, a wallet was a tool wallet was a tool ... a platform for managing private keys. I'm talking about self- storage. Yes, yes. However, no one cares what technology is behind it, right? Therefore, we simply provide quality services. I mean, they don't care about the underlying technology, right? When we use the Internet, we don't think about the TCP protocol. People aren't interested in that, right? Or about what database you use. Same here. I'm really interested in how you think cryptoassets can be combined with loyalty programs? There are so many great programs in Japan. Rakuten also has an amazing loyalty program, but do you think it could improve the way reward points work or create more unified ways for consumers to use crypto? Do you think payments, stablecoins, and everything related to payments will remain separate areas? What do you think about the future of this segment in Japan? Well, payments and investments are different things, right? We expect an increase in the number of investors trading cryptocurrency. Simply because the regulatory framework is changing. There are currently over 14 million crypto trading accounts in... 40 or 14? 14 million. 14? 14, 14 million accounts. Many users. Yes. Unfortunately, this year most people are focused on the stock market, you know. Therefore, most businesses are having difficulties this year . In . In any case, I believe that the crypto trading market has good prospects for further growth. And, of course, stablecoins are used for settlements, right? If a consumer uses payments via stablecoins, the merchant must consider two points. The first is speed, the second is speed, the second is cost. Today, many merchants, especially small businesses, are struggling because the card payment fees are too high for them, right? And if blockchain and the payment system can offer something cheaper and faster something cheaper and faster , then a lot of sellers, you know, are starting to think about using this new platform, right? Then, if Rakuten can offer more successful use cases for merchants and users, we can create a next- generation digital payments ecosystem. Um, I think this is a very interesting point. So, I would like to know: when you talk to merchants about accepting stablecoins or cryptocurrency, what is their reaction? Is it enough for them to just hear, “Hey, you’ll have to pay less”? Is the argument, for example, that " you'll save 2% on transaction fees because it's so cheap," or do they want some other features? Or they say, "Oh, we don't want to get involved with cryptocurrency because our users won't understand it." How do they feel about it and what do you think will make merchants finally say they accept stablecoins? I do n't know. Cost is more important to them here. Today, the seller pays about 3% for a credit card. That's a lot, yes. So, if we can cut that in half, let's say to 1.5% in half, let's say to 1.5% . And an even more important thing for them is speed for them is speed . Also, customers pay the same, but like with a credit card, they can get the money in a month or two, right? So if a stablecoin works in real time, it helps a lot, especially for small merchants, yes. Surprisingly. Ahem. Have recent advances in AI changed your vision for how to make a better wallet? How do you see the combination of AI and Rakuten Wallet, if at all possible? AI is being implemented into the wallet platform or wallet platform or ...How to say? Er... more...How to say? personalized consultants. Especially an AI avatar that helps make better decisions on their behalf, for example, so behalf, for example, so ...Yeah. With an AI avatar, trading and settlement support becomes much faster and easier. And therefore... Automation of money management. I think of it as a I think of it as a ...transition from... a transition from a wallet you hold to a wallet you talk to. Yes. This would be a very interesting feature. Um, talking to your bank account bank account . Ahem. Another thing that interests me: it seems like a lot of attention is being paid to trade. Not just for Rakuten Wallet, but for the crypto industry in general: we are now seeing tokenization of assets, real assets, and shares. Do you think that over time, everything will look like a trading platform, and we won't need banks because the exchange will become our main financial instrument, or will banks be forced to offer similar things? How do you think financial institutions will respond or change in the future? Many financial groups are thinking about how to combine banking and investment services. And maybe add cryptocurrency there in the future. But I also know that regulation is moving in the same direction. Ahem. However, I don't think one player will capture the entire market right now. It's not about just buying, but about how to combine all these services. For the client, the " the client, the " single window" format is much more convenient, isn't it? If a client has only one account with KYC and AML checks, access to securities and trading— securities and trading— all through one account— all through one account— it’s much easier. This is similar to what Rakuten provides: all financial services, including insurance, banking, securities, payments, and credit cards. In addition to another. Do you think this is good in this case? Yes, this is a good trend and I think it is an opportunity for Rakuten to lead this industry. Perfectly. And my last question for you: in 2028, a lot of things will become legal, and there are a lot of opportunities in the cryptosphere and finance in general right now. So what advice would you give to the founders in this room, especially those based in Japan: what are the important things to focus on in the next few years to create what people need, and where do you see the opportunities? What advice would you give them? I have a few thoughts on this. on this. First, there are the regulatory changes that I have already mentioned in the context of the brokerage business brokerage business . This is a good opportunity for the industry to expand its customer base. Changes in regulation mean that cryptocurrency is becoming a financial product financial product that is much easier to trade. In addition, ETFs will appear in 2028. Therefore, many investors, including institutional clients, will start allocating their assets to Ethereum, right? That's what I expect right? That's what I expect . Yes, this is very good news for us. Mr. Asada, thank you very much for this wonderful conversation. Please greet him with loud applause.