- Japan prepares for first yen stablecoin as JPYC eyes bond market.
- Aplus lets cardholders redeem loyalty points for Bitcoin and XRP.
- Circle expands USDC listings as Japan accelerates digital asset adoption.
Japan’s Financial Services Agency (FSA) is preparing to approve the nation’s first yen-denominated stablecoin later this year. The ruling is likely to transform digital finance in Japan and can also impact the government bond market.
Tokyo-based fintech company JPYC will lead the initiative. This month, the firm registered as a money transfer business, a significant step prior to issuance. Liquid assets, such as bank deposits and Japanese government bonds, will back each JPYC token, which will be pegged one-to-one to the yen.
Tokens will be issued by applications of individuals and corporations via bank transfers into digital wallets. The framework should be able to offer security and transparency, which is in line with the conservative regulatory attitude in Japan.
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JPYC’s potential role in the bond market
The global stablecoin market now exceeds $286 billion, dominated mainly by US dollar-pegged tokens such as USDT and USDC. Japan’s entry domestically may shift capital flows, generating new demand for yen-backed assets.
According to Okabe, a representative of JPYC’s issuing company, widespread adoption could strengthen demand for Japanese government bonds. He noted that already in the United States, stablecoin issuers are significant purchasers of Treasurys to use as reserves. The same in Japan would relate digital tokens directly to national debt instruments.
Okabe also warned that nations that are slow to embrace stablecoins may lose institutional demand, and this may drive interest rates up. In the case of Japan, faster regulatory approval could be used to gain a competitive edge in this new market.
Credit card points converted into crypto
In a parallel development, Aplus, the credit card service of Shinsei Bank Group, has launched a feature enabling users to redeem loyalty points for cryptocurrency. As crypto commentator Xaif on X explains, customers can now use their online accounts to trade their points via Bitcoin, XRP, or Ethereum.
Currently, the conversion rate stands at 2,100 points for roughly 30,000 yen in digital assets. The program, launched in collaboration with SBI VC Trade, does not imply extra registration, so users can obtain crypto with minimal effort.
The legalization of JPYC and the incorporation of crypto in consumer rewards signify the increasing interest in JPYC towards digital assets in Japan.
Together, these initiatives could strengthen the bond market while bringing cryptocurrency closer to everyday financial life.
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