Japan Prepares First Yen-Backed Stablecoin Amid Global Regulatory Shift

Japan was the first country to establish a regulatory framework for stablecoins. Yet, until now, it has taken a seemingly passive role in the technology, with no blockchain-based representation of its national currency, the yen. That may soon change. 

After years of quiet infrastructure development, Japan is preparing to launch its first fully collateralized, yen-backed stablecoin later this year.

Takashi Tezuka, Japan’s country manager at Web3 infrastructure provider Startale Group, told Cointelegraph that the gap between Japan and the United States on stablecoins reflects a deeper philosophical difference.

“The GENIUS Act was greeted with a mix of relief and curiosity,” Tezuka said, referring to the latest US stablecoin bill.

“Relief, “because the US has finally caught up with what Japan did two years earlier — putting a comprehensive legal framework around stablecoins,” he added.

This week’s Crypto Biz explores Japan’s stablecoin ambitions, the increasing role of institutions in digital assets, and mounting concerns over leverage in crypto treasuries.

Japan’s Monex Group eyes yen-backed stablecoin

Monex Group, a Tokyo-based financial services company, is weighing the launch of a stablecoin pegged to the Japanese yen — a move it says could enhance yen-denominated international remittances and corporate settlements.

“Issuing stablecoins requires significant infrastructure and capital, but if we don’t handle them, we’ll be left behind,” Monex Group Chairman Oki Matsumoto told local media.

While the company hasn’t fully committed to an issuance, Matsumoto said Monex “will respond properly” to the emerging market opportunity.

Monex wouldn’t be the first to explore a yen-backed stablecoin. Local fintech JPYC is reportedly preparing to roll out 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

Wall Street heavyweight JPMorgan plans to commit up to $500 million to Numerai, a crypto-friendly hedge fund known for using artificial intelligence and crowdsourced models to generate returns.

Numerai said the capital will be deployed over the next year and would nearly double its assets under management, currently around $450 million.

The fund delivered more than 25% net returns last year by blending crowdsourcing, AI, crypto and other quant-driven strategies.

Following the announcement, Numerai’s native cryptocurrency, Numeraire (NMR), surged over 120% and last traded above $120.

For JPMorgan, the deal marks another full-circle moment for a bank that once heavily criticized digital assets but has steadily expanded into the sector — including a partnership with Coinbase to facilitate crypto purchases and ongoing considerations around crypto-backed lending.

ETH treasury company eyes stock buybacks after massive Ether purchase

ETHZilla, an Ether (ETH) treasury company that recently pivoted away from biotechnology, has approved a $250 million share repurchase program less than a month after making a major Ether acquisition.

The board of directors authorized the buyback of up to $250 million worth of outstanding common shares. ETHZilla currently has 165.4 million shares outstanding.

The company recently leveraged its balance sheet to acquire more than 102,000 ETH at an average price just under $3,950. While it spent approximately $403 million on the purchases, the holdings are now valued at around $489 million.

“ETH treasury firms have risks, such as overleveraging,” Komodo Platform’s chief technology officer, Kadan Stadelmann, told Cointelegraph.

In a bear market, an overleveraged position could trigger forced liquidations, which could fuel heavy volatility for ETH, Stadelmann warned. 

KindlyMD plans $5 billion Bitcoin purchase 

Healthcare company KindlyMD plans to significantly expand its Bitcoin (BTC) acquisition strategy, announcing a massive $5 billion at-the-market equity offering to fund general corporate purchases — including large-scale Bitcoin buys.

The company launched its Bitcoin strategy earlier this month with a $679 million purchase, following its merger with Nakamoto, a digital asset firm founded by David Bailey, former crypto adviser to US President Donald Trump. KindlyMD has set an ambitious goal of acquiring 1 million BTC.

Its August purchase has already propelled KindlyMD to 16th place in the corporate Bitcoin treasury rankings, ahead of Semler Scientific, ProCap, GameStop and Cango, according to industry data.

The company’s latest equity program will be executed through multiple agents, including Cantor and TD Securities, with shares sold at prevailing market prices on exchanges.

While KindlyMD’s stock dipped on the news, shares remain up more than 300% since May, when the company first unveiled its Bitcoin strategy.

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