JPYC Aims for ¥10 Trillion in Stablecoin Issuance: Impact on Japanese Bonds and Monetary Policy

Japan’s first domestic yen-pegged stablecoin issuer, JPYC, is poised to revolutionize the country’s financial landscape by targeting issuance of ¥10 trillion (around $66 billion). This ambitious goal could significantly impact Japan’s bond market dynamics and challenge the Bank of Japan’s control over monetary policy. As JPYC begins issuing its stablecoin backed by domestic savings and government bonds, analysts predict a shift in power dynamics as private issuers potentially hold vast quantities of Japanese government bonds in the coming years.