SBI Holdings Expands JPYSC Stablecoin Strategy into Japanese Bond Market
- SBI Shinsei Trust Bank has invested 1 billion yen in short-term Japanese government bonds as part of its JPYSC stablecoin reserves.
- The JPYSC stablecoin aims for a total supply of approximately 20.1 billion yen as of September.
- Applications for SBI VC Trade’s lending service in yen have reached around 6.9 billion yen.
- The revised Payment Services Act allows trust-backed stablecoins to allocate up to 50% of their reserves in government bonds or time deposits.
- The bid/cover ratio for Japan’s five-year government bond auction fell to 3.11, indicating declining demand.
SBI Holdings’ move to invest a portion of its JPYSC reserves into Japanese government bonds reflects the new regulatory framework established by the Payment Services Act, effective June, which promotes liquidity and compliance in the stablecoin market.
This strategy positions SBI to maintain liquidity while potentially expanding the use cases for JPYSC beyond bond investments, as it anticipates future applications in payments and foreign exchange transactions.(Source)
