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

ChainCatcher news, according to Cointelegraph, JPYC, Japan's first officially licensed yen stablecoin issuer, stated that as the stablecoin market expands, issuers may become important buyers in the Japanese Government Bonds (JGBs) market. JPYC plans to invest 80% of its issuance proceeds 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 the current issuance amounting to approximately $930,000, and aims to reach $66 billion within three years.

The company's CEO, Noritaka Okabe, stated that the demand for government bonds in stablecoin reserves will be influenced by the supply and demand balance of stablecoins, and this trend will appear globally. Meanwhile, the Financial Services Agency (FSA) of Japan has approved the "Payment Innovation Project" formed by major financial institutions such as Mizuho Bank and Mitsubishi UFJ Bank. These institutions will begin issuing payment stablecoins this month, further promoting the application of stablecoins in Japan's traditional financial sector.