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

According to Cointelegraph, Japan's first officially licensed yen stablecoin issuer, JPYC, stated that as the stablecoin market expands, issuers may become significant buyers in the Japanese government bonds (JGBs) market.

JPYC plans to invest 80% of its issuance revenue in 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 yen stablecoin on October 27, with an issuance volume 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 from stablecoin reserves will be influenced by the balance of supply and demand for stablecoins, a trend that will 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, which will start issuing payment stablecoins this month, further promoting the application of stablecoins in Japan's traditional financial sector.