Bonds
Crypto markets tumbled after Japan’s 10-year government bond yield spiked to its highest level since 2008, prompting about $640 million in liquidations. The move ignited a global risk-off reaction that forced leveraged positions across exchanges to close.
Yen-backed stablecoin issuer JPYC signalled plans to increase its holdings of Japanese government bonds over the coming years, pointing to a shift in how stablecoin reserves are managed. The move could funnel crypto-linked capital into domestic debt markets while raising questions about concentration and regulatory scrutiny.
Issuer of the yen-backed stablecoin JPYC signaled it may begin heavily investing in Japanese government bonds in a few years to improve yield and reserve stability. The move could reshape reserve practices and influence liquidity across the crypto market and DeFi in Japan.