Japanese stablecoin issuer JPYC: Stablecoin issuers may become major buyers of Japanese government bonds

Jinse Finance reported that Tokyo-based JPYC, the issuer of Japan's first yen-pegged stablecoin, stated that as reserves increase, the issuer could become a major buyer of Japanese Government Bonds (JGB). JPYC began issuing its yen token "JPYC" on October 27, based on Japan's revised Payment Services Act—the country's first legal framework for stablecoins. The company has so far issued tokens worth approximately $930,000 and plans to reach a circulation of $66 billion within the next three years. JPYC plans to invest 80% of the proceeds from issuance into Japanese Government Bonds, with the remaining 20% deposited in banks, initially focusing on short-term securities.