Japan was the pioneer in creating a regulatory framework for stablecoins. However, it has maintained a rather passive stance on the technology, lacking a blockchain representation of its national currency, the yen. This situation is about to change.
Following years of quiet infrastructure development, Japan is set to launch its first fully collateralized, yen-backed stablecoin later this year.
According to Takashi Tezuka, Japan’s country manager at the Web3 infrastructure provider Startale Group, the disparity between Japan and the United States regarding stablecoins reflects a more profound philosophical divide.
“The GENIUS Act was met with a blend of relief and intrigue,” he noted, alluding to the recent US stablecoin legislation.
“Relief, because the US has finally aligned with what Japan established two years prior—creating a comprehensive legal framework around stablecoins,” he added.
This week’s Crypto Biz delves into Japan’s aspirations for stablecoins, the rising influence of institutions in digital assets, and growing concerns about leverage in crypto treasuries.
Monex Group eyes yen-backed stablecoin
Tokyo-based Monex Group is considering launching a stablecoin pegged to the Japanese yen—a step that could improve yen-based international remittances and corporate transactions.
“Issuing stablecoins requires substantial infrastructure and capital, but if we don’t engage, we risk falling behind,” Monex Group Chairman Oki Matsumoto stated to local media.
While the company hasn’t made a definite commitment to issuance, Matsumoto expressed that Monex “will appropriately respond” to the emerging market opportunity.
Monex wouldn’t be the first entity to explore a yen-backed stablecoin. Local fintech JPYC is reportedly preparing to introduce the country’s first yen stablecoin this fall, backed one-to-one by bank deposits and government bonds.
JPMorgan commits up to $500M to crypto-friendly hedge fund
JPMorgan, a major player on Wall Street, plans to allocate up to $500 million to Numerai, a hedge fund known for leveraging artificial intelligence and crowdsourced models to achieve returns.
Numerai revealed that the funds will be utilized over the next year and are expected to nearly double its current assets under management, which are around $450 million.
The fund achieved over 25% net returns last year through a combination of crowdsourcing, AI, crypto, and other quantitative strategies.
In the wake of the announcement, Numerai’s native cryptocurrency, Numeraire (NMR), surged over 120% and last traded above $120.
For JPMorgan, this deal signifies a full-circle moment for a bank that once vocally criticized digital assets but has now progressively engaged in the sector—partnering with Coinbase to facilitate crypto transactions and considering crypto-backed lending options.
ETH treasury company eyes stock buybacks after massive Ether purchase
ETHZilla, an Ether (ETH) treasury company that recently shifted its focus from biotechnology, has approved a $250 million share repurchase program shortly after a significant Ether acquisition.
The board has authorized the buyback of up to $250 million in outstanding common shares. ETHZilla currently has 165.4 million shares available.
The company recently used its balance sheet to acquire over 102,000 ETH at an average price of just under $3,950. While approximately $403 million was spent on these purchases, the current valuation of the holdings is around $489 million.
“ETH treasury firms face risks, such as overleveraging,” noted Komodo Platform’s chief technology officer, Kadan Stadelmann, in an interview with Cointelegraph.
In a bear market, an overleveraged position could result in forced liquidations, intensifying volatility for ETH, Stadelmann cautioned.
KindlyMD plans $5 billion Bitcoin purchase
Healthcare firm KindlyMD has announced plans to expand its Bitcoin (BTC) acquisition strategy significantly, with a $5 billion at-the-market equity offering intended to finance general corporate purchases, including large Bitcoin buys.
The company initiated its Bitcoin strategy earlier this month with a $679 million purchase following its merger with Nakamoto, a digital asset firm founded by David Bailey, the former crypto adviser to US President Donald Trump. KindlyMD aims to acquire 1 million BTC.
Its August purchase has already elevated KindlyMD to 16th position in the corporate Bitcoin treasury rankings, surpassing Semler Scientific, ProCap, GameStop, and Cango, according to industry data.
The latest equity program will be conducted through various agents, including Cantor and TD Securities, with shares sold at market prices on exchanges.
Although KindlyMD’s stock dipped following the announcement, shares have risen over 300% since May, when the Bitcoin strategy was first revealed.
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