Japan’s leading yen-pegged stablecoin issuer plans to allocate about 80% of reserves to Japanese government bonds (JGBs) and 20% to bank deposits, positioning stablecoins as a new source of sovereign debt demand. The firm targets up to ¥10 trillion in issuance over three years, potentially making stablecoin treasuries meaningful holders of JGBs as the Bank of Japan scales back bond purchases.
Backers say a rules-based reserve mix could translate rising on-chain adoption into steady JGB bids, supporting liquidity and smoothing settlement between crypto rails and traditional finance. Critics warn large stablecoin balance sheets concentrated in JGBs may influence yield dynamics and complicate policy transmission, requiring close coordination with financial regulators.