Tokyo Builds Momentum in Fintech Expansion

Greater Bay Area Fintech Talent Push

Written by Claude Baumann | Publisher

FinCity.Tokyo positions the Japanese capital as the next fintech frontier amid surging digital finance growth in Asia.

As Japan’s fintech market races toward an estimated $30.2 billion by 2033 – expanding at a brisk 14.1 percent annually – Tokyo is intensifying its efforts to draw the world’s most dynamic fintech players into its orbit.

FinCity.Tokyo, the city’s financial promotion body, is leading this charge with hands-on support for startups aiming to enter the Japanese market and build lasting partnerships.

Showcasing Tokyo

FinCity.Tokyo will host a Fintech Insight Session on 13 November 2025 at the Singapore Fintech Festival (SFF), under the theme «Unlocking Tokyo: The Next Wave in Fintech and DeFi».

The session will explore how global and ASEAN fintechs can leverage Tokyo’s regulatory sandbox, growing venture capital activity, and its role as a bridge for Japanese capital into Southeast Asia.

Second Home for Global Fintechs

«ASEAN’s fintech sector is gaining strong momentum and cross-border expansion is the natural next step in its evolution,» said Tokio Morita, Executive Director of FinCity.Tokyo.

«Japan brings not only capital, but also the credibility of a well-established regulatory environment and deep institutional trust. Our goal is to help fintechs from Singapore, ASEAN, and globally build their second home in Tokyo,» he added.

With ASEAN’s fintech market expected to exceed $150 billion by 2030, the timing for such cross-border collaboration could hardly be better.

Sandbox Collaboration and Web3 Acceleration

Japan’s Financial Services Agency (FSA) has taken a proactive role by opening its regulatory sandbox to both domestic and international startups. The initiative allows companies to test new business models in a flexible, low-barrier environment – paving the way for smoother market entry and innovation in areas such as digital assets, Web3, and decentralized finance.

According to Japan’s Ministry of Internal Affairs and Communications, the nation’s Web3 economy is projected to expand more than 20-fold to 2.4 trillion yen by 2027 – a sign of strong institutional and governmental commitment to digital transformation.

From Singapore to Tokyo

Among FinCity.Tokyo’s success stories is ADDX, a Singapore-based digital securities platform that now collaborates with Japanese investors and major institutions including Tokai Tokyo Financial Holdings, the Development Bank of Japan, and the Japan Investment Corporation.

Another example is Lydia.ai, a healthtech startup using AI to extract insights from unconventional data sources. Co-Founder Christina Cai said: «Working with FinCity.Tokyo gave us an insider’s route into Japan’s financial ecosystem. They supported us with office setup, legal incorporation, and direct introductions to Japanese financial institutions.»

Turning Tokyo into a Fintech Springboard

FinCity.Tokyo’s mission extends beyond promotion. Through partnerships with the Tokyo Metropolitan Government’s Invest Tokyo platform, the organization provides foreign fintechs with practical support, from licensing advice to venture capital introductions.

Under the Attraction U Project, qualifying fintechs can receive subsidies of up to 30 million yen (approximately $200,000) to establish and scale their business in Japan.

Global Financial Hub in the Making

Tokyo is shaping itself into a global springboard for fintech innovators, combining regulatory clarity, institutional trust, and access to deep pools of Japanese capital.

As Asia’s fintech landscape matures, the Japanese capital aims to play a pivotal role – connecting global innovation with one of the world’s largest and most sophisticated financial markets.