"Stablecoins are a new game changer for Japanese bonds."

Stablecoins and Japanese Bonds

Japan's first local yen stablecoin issuer JPYC stated that stablecoins could become significant buyers of Japanese government bonds in the coming years. This development may also impact the Bank of Japan's control over monetary policy.

JPYC's Growth Targets

JPYC launched its yen-pegged stablecoin on October 27, 2023. The company has issued approximately 143 million yen worth of JPYC so far, and as of November 12, the number of account holders has reached 4,707. JPYC aims to issue a total of 10 trillion yen (approximately 66.32 billion dollars) worth of stablecoins within the next three years.

Market Dynamics and Hedge Needs

CEO Noritaka Okabe noted that JPYC still holds a small share of the global 290 billion dollar stablecoin market. However, he emphasized that he believes this brand will help increase its presence on the yen. Okabe stated, “In this era where various assets can be traded in real-time on blockchain technology, the stablecoin market still being dominated by the dollar creates additional risks and transaction costs for Japanese companies.”