Yen stablecoin issuers could become major buyers in JGB market, says analyst

Yen-denominated stablecoin issuers are poised to become major buyers of Japanese government bonds (JGBs), according to Noritaka Okabe, founder of the stablecoin issuer JPYC. Okabe noted that the Bank of Japan (BOJ) currently holds about half of all outstanding JGBs. He suggested that if the central bank reduces its bond purchases, stablecoin issuers—who must hold reserves to back their tokens—could emerge as important players to absorb the remaining supply.