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Stock impact report

Stablecoin May Replace Central Bank Demand in Japan's $9 Trillion Bond Market [Yahoo! Finance]

Mitsubishi UFJ Financial Group, Inc. (MUFG) 
Company Research Source: Yahoo! Finance
JPYC, the Tokyo-based issuer behind Japan's first yen-pegged stablecoin, has said that digital asset companies could become major holders of government bonds as their reserves grow. JPYC launched its yen-backed stablecoin on October 27 under Japan's revised Payment Services Act, the nation's first legal framework for stablecoins. The startup has issued roughly $930,000 worth of tokens, with a target circulation of 10 trillion yen ($66 billion) within the next three years. The tokens are fully convertible to yen and backed by bank deposits and JGBs, designed to move seamlessly across blockchain networks. JPYC Plans to Invest 80% of Stablecoin Proceeds in Government Bonds Founder and CEO Noritaka Okabe told Reuters that stablecoin issuers could step into the role traditionally held by the BOJ, which has been tapering its bond purchases after years of aggressive monetary easing. “With the BOJ tapering bond buying, stablecoin issuers could emerge as the biggest holders of JGB Show less Read more
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