Japan's first yen stablecoin issuer JPYC may become a new force in the government bond market

Deep潮 TechFlow News, November 12th, according to Cointelegraph, Japan’s first officially licensed JPY stablecoin issuer JPYC stated that as the stablecoin market expands, issuers may become significant buyers in the Japanese government bond (JGB) market. JPYC plans to invest 80% of its issuance revenue into government bonds and deposit 20% in banks. This model is expected to fill the market gap left by the Bank of Japan’s slowdown in bond purchases.

JPYC began issuing its JPY stablecoin on October 27th, with an current issuance of approximately $930,000, aiming to reach $66 billion within three years. The company’s CEO, Noritaka Okabe, stated that the demand for government bonds in stablecoin reserves will be influenced by the supply and demand balance of stablecoins, a trend expected to emerge globally.

Meanwhile, Japan’s Financial Services Agency (FSA) has approved a “Payment Innovation Project” composed of major financial institutions such as Mizuho Bank and Mitsubishi UFJ Bank. These institutions will start issuing payment stablecoins this month, further promoting the application of stablecoins in Japan’s traditional financial sector.