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- Japan prepares for first yen stablecoin, JPYC to lead issuance.
- JPYC tokens backed by bonds may shift Japan’s financial markets.
- Credit card points converted to crypto highlight rising adoption.
Japan’s Financial Services Agency is preparing to approve the country’s first yen-backed stablecoin later this year. The move positions fintech company JPYC at the center of a shift in Japan’s digital finance landscape.
The firm recently registered as a money transfer company, which is one of its major milestones before the launch of its stablecoin. Liquid assets such as bank deposits and Japanese government bonds will back the tokens and cover their value in yen.
Individuals and corporations will issue applications, and tokens will be issued upon making bank transfers into digital wallets. This structure is transparent and secure, which is consistent with Japan’s conservative attitude to the regulation of cryptocurrencies.
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Stablecoin adoption and bond market implications
The total number of stablecoins in the global market is currently over 286 billion, with the majority of them, including USDT and USDC, pegged to the dollar. Japan’s introduction of a yen-pegged token has the capacity to rechannel capital flows within the country, hence intensifying the demand for local financial instruments.
As per Okabe, a spokesman of the JPYC issuing company, extensive use can directly raise the demand for Japanese government bonds. He pointed out that the issuers of stablecoins in the United States are already major purchasers of Treasurys.
Okabe also warned that nations that are slow in adopting stablecoin may lose institutional demand, which might push interest rates up. Japan’s early approval may thus give the country a competitive advantage in this growing market.
Credit card points entering digital assets
Individually, Shinsei Bank Group’s Aplus credit card service has launched a new feature for its customers. The user can now exchange loyalty points into cryptocurrency, such as Bitcoin, XRP, and Ethereum, with online accounts without any additional registration.
Currently, 2,100 points are traded in 30,000 yen worth of digital assets. This initiative, initiated with SBI VC Trade, enables cardholders to interact with crypto more conveniently.
The approval of stablecoin by JPYC and the use of crypto in consumer rewards are signs of fast-growing digital asset adoption in Japan. These steps can stabilize the government bond market by introducing cryptocurrency deeper into the everyday financial process.
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