Japan's financial regulators and major financiers are overhauling the country's financial system to promote the growth of stablecoins and the Web3 economy.
As part of this effort, SBI, Japan's largest financial group, is leading a Web3 strategy that puts a yen stablecoin at its core. The company is building settlement infrastructure for trading securities and real assets through its own blockchain, Streamium.
SBI is also seeking government approval for the project, which aims to introduce a yen-based stablecoin called JPYSC to facilitate carry trades in the decentralized finance market.
With Japan's low interest rates shaking global financial markets, introducing a yen stablecoin could extend this activity into the decentralized finance market. However, major Japanese banks are also considering issuing their own yen-based stablecoin, but retail investor participation is limited due to high crypto asset taxes.