Japan’s Stablecoin Market May Fill Central Bank’s Bond-Buying Gap

A new report highlights the potential for stablecoin issuers in Japan to significantly impact the nation’s sovereign debt market. JPYC, a Tokyo-based company issuing the first yen-pegged stablecoin in Japan, predicts its reserves could fill the gap left by the Bank of Japan (BOJ) as it reduces purchases of government bonds (JGBs). 80% of JPYC’s initial issuance will be allocated to JGBs and the remaining 20% to bank deposits for short-term investment. The company aims to achieve $66 billion in circulation over the next three years.