JPYC, the issuer of the yen-denominated stablecoin, may be able to fill the gap left by the Bank of Japan's bond purchases.

Odaily Planet Daily reports that JPYC, Japan's first officially licensed yen-denominated stablecoin issuer, stated that as the stablecoin market expands, issuers may become significant buyers in the Japanese government bond (JGBs) market. JPYC plans to invest 80% of its issuance proceeds in government bonds and deposit 20% in banks, a model expected to fill the market gap left by the Bank of Japan's slowdown in bond purchases.

JPYC began issuing its yen-denominated stablecoin on October 27, with a current issuance of approximately $930,000 and a three-year target of $66 billion. The company's CEO, Noritaka Okabe, stated that the demand for government bonds as stablecoin reserves will be influenced by the supply and demand balance of stablecoins, a trend that will emerge globally. (Cointelegraph)