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Japan's First Yen Stablecoin Issuer JPYC Could Become a New Force in Government Bond Market
Summary: According to Cointelegraph, Japan's first officially licensed yen stablecoin issuer JPYC has stated that as the stablecoin market expands, the issuer may become a significant buyer in Japan's government bond (JGBs) market. JPYC plans to invest 80% of its issuance revenue in government bonds and 20% in banks, potentially filling the market gap left by ...
According to Cointelegraph, Japan's first officially licensed yen stablecoin issuer JPYC has stated that as the stablecoin market expands, the issuer may become a significant buyer in Japan's government bond (JGBs) market. JPYC plans to invest 80% of its issuance revenue in government bonds and 20% in banks, potentially filling the market gap left by the Bank of Japan's slowing bond purchases. JPYC began issuing its yen stablecoin on October 27 with a current circulation of around $930,000, aiming to reach $66 billion within three years. The company's CEO Noritaka Okabe noted that the demand for government bonds from stablecoin reserves will be influenced by the balance of stablecoin supply and demand, a trend expected to be seen globally. Meanwhile, the Japanese Financial Services Agency (FSA) has approved a 'Payment Innovation Project' composed of major financial institutions such as Mizuho Bank and Mitsubishi UFJ Bank, which will start issuing payment stablecoins this month, further promoting the use of stablecoins in Japan's traditional financial sector.
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Link: Japan's First Yen Stablecoin Issuer JPYC Could Become a New Force in Government Bond Market [Copy]
