TechFlow news, November 12 — According to Cointelegraph, JPYC, Japan's first officially licensed yen-denominated stablecoin issuer, said that as the stablecoin market expands, issuers could become significant buyers in Japan's government bond (JGB) market. JPYC plans to invest 80% of its issuance proceeds in government bonds and deposit the remaining 20% in banks—a model that could fill the market gap left by the Bank of Japan’s reduced bond purchases.
JPYC began issuing its yen stablecoin on October 27 and currently has around $930,000 in circulation, with a three-year target of reaching $66 billion. CEO Noritaka Okabe stated that demand for government bonds from stablecoin reserves will depend on the supply-demand balance of stablecoins, a trend expected to emerge globally.
Meanwhile, Japan’s Financial Services Agency (FSA) has approved the "Payment Innovation Project" led by major financial institutions including Mizuho Bank and Mitsubishi UFJ Bank. These institutions are set to begin issuing payment stablecoins this month, further advancing stablecoin adoption within Japan’s traditional financial sector.
