June 13th, 2026

Japan Bets on Stablecoins and Crypto ETFs

Japan has long been a leader in technological adoption, and now it is positioning itself at the forefront of digital asset regulation. On June 1, the Liberal Democratic Party submitted a bold proposal to Finance Minister Satsuki Katayama advocating for yen-backed stablecoins in Asian cross-border settlements and a clear legal framework for cryptocurrency exchange-traded funds. The initiative offers a compelling example for the rest of the world. While many governments continue to wrestle with digital assets, Tokyo is demonstrating how innovation can coexist with rigorous oversight. The global financial system could benefit from precisely this kind of decisive leadership.

The proposal is especially notable given Japan’s history with digital assets. The country was home to the infamous Mt. Gox collapse, a crisis that shattered confidence in cryptocurrency markets and erased billions in value. Rather than responding with blanket prohibitions, however, Tokyo chose a different path. Policymakers built one of the world’s most comprehensive regulatory frameworks, learning hard lessons while strengthening consumer protections. Today, Japan’s Financial Services Agency actively encourages financial institutions to explore blockchain technology for greater operational efficiency.

The nation’s three largest banks already participate in stablecoin initiatives and issue their own digital assets. This transformation from cautionary tale to regulatory leader illustrates an important lesson: thoughtful regulation can foster long-term growth. Lawmaker Junichi Kanda and his colleagues appear eager to showcase these achievements at the Asian Development Bank meeting in 2027 as a model for other countries.

Dollar-backed tokens currently dominate the global stablecoin market, accounting for the overwhelming majority of the hundreds of billions of dollars circulating across major blockchain networks. Japanese policymakers recognize both the concentration risk and the geopolitical implications of relying heavily on foreign digital currencies. Their goal is to establish a credible regional alternative centered on the yen.

Stablecoins effectively transform traditional currencies into programmable software, enabling settlement that is continuous, transparent, and potentially borderless. By promoting yen-backed tokens for Asian cross-border payments, Japan strengthens its monetary sovereignty while keeping more capital within its sphere of influence. Europe has adopted a similar strategy to support the euro. One recent euro stablecoin initiative brought together 25 major banks in an effort to challenge American dominance. Tokyo is applying the same instinct to Asia. In doing so, it seeks to transform the yen from a conventional fiat currency into a critical layer of digital infrastructure for the region.

The inefficiencies of the current international banking system make this vision particularly attractive. Traditional cross-border transfers often take several days to settle and generate substantial fees through intermediary banks. Yen-backed stablecoins could eliminate many of these middlemen and reduce settlement times to mere seconds. A company in Tokyo could pay a supplier in Singapore almost instantly using programmable yen tokens, bypassing much of the correspondent banking system altogether. Such efficiency would reduce friction in international commerce and encourage deeper economic integration throughout Asia.

The Asian Development Bank recognizes this potential, which is one reason Japan intends to highlight these developments at upcoming regional forums. By modernizing payment rails, Japan hopes to ensure that the yen remains competitive against both the digital dollar and the emerging digital yuan.

Beyond stablecoins, the ruling party is also pushing for clear legislation governing cryptocurrency exchange-traded funds. These products offer traditional investors a familiar vehicle for gaining exposure to digital assets without navigating the complexities of wallets, private keys, and self-custody. They remove many of the technical barriers that have historically discouraged participation. In the United States, spot Bitcoin ETFs attracted tens of billions of dollars in assets under management shortly after receiving regulatory approval in 2024. Japan hopes to capture similar institutional momentum while keeping domestic capital within its own markets.

SoftBank occupies a central role in this evolving landscape. The conglomerate controls critical consumer payment infrastructure through PayPay, the mobile payments platform with more than 70 million active users. PayPay recently acquired a 40 percent stake in Binance Japan, creating opportunities to connect everyday commerce with digital assets. The arrangement could allow users to purchase cryptocurrencies and move proceeds through familiar payment applications. SoftBank does not necessarily need to issue digital tokens itself. Its advantage lies in controlling the infrastructure and shaping the user experience through which these services are delivered.

Masayoshi Son’s broader technology strategy further complements this vision. SoftBank is investing heavily in artificial intelligence infrastructure, including plans to develop five gigawatts of AI data center capacity in France through investments that could reach €75 billion. Over time, programmable money and increasingly automated financial systems will depend on precisely this kind of computing power.

Platforms responsible for routing transactions, pricing risk, and executing smart contracts require high-performance networks and near-instant digital payment systems. Son appears to be positioning SoftBank at the foundation of a future in which finance and technology become deeply intertwined. His willingness to take on significant debt reflects a belief that controlling the infrastructure layer of tomorrow’s economy will be more valuable than simply participating in it.

The international community is watching these developments closely because the cryptocurrency industry still seeks the mainstream legitimacy necessary to achieve broader adoption. For much of its history, digital assets have been associated with volatility, speculation, and fraud. Robust regulatory frameworks help change that perception. When a major economy such as Japan formally embraces these technologies, it reduces stigma and opens the door to significant pools of traditional capital.

Pension funds, endowments, and sovereign wealth funds may hesitate to hold unregulated tokens directly, but many are far more comfortable purchasing regulated exchange-traded funds or utilizing government-approved stablecoins.

An influx of institutional capital could help stabilize markets and accelerate innovation. Developers gain confidence when they can build on regulatory foundations that appear durable and predictable. As participation expands, the industry may become more mature, liquid, and resilient. In that sense, mainstream acceptance serves as a bridge between the world of cryptocurrency enthusiasts and the broader global financial system, creating a unified marketplace capable of operating at much greater scale.

This comprehensive strategy offers significant benefits. Clear legal frameworks encourage institutional participation, deepen liquidity, and create safer pathways for retail investors. Cross-border payments become faster, cheaper, and more transparent.

At the same time, the risks should not be ignored. Stablecoins introduce elements of centralization, as private issuers control reserve assets and often retain the ability to freeze wallets. Exchange-traded funds require investors to trust third-party custodians, a reality that runs counter to the decentralized ideals that originally defined the cryptocurrency movement. Regulators must remain vigilant, enforcing strict audit requirements and ensuring complete transparency regarding reserve holdings.

Even so, Japan appears to be navigating these trade-offs with unusual care. Policymakers are attempting to balance consumer protection with technological innovation and economic competitiveness. The broader world would be wise to pay attention.

Tokyo is demonstrating that countries can embrace digital finance without sacrificing financial stability or surrendering control over monetary policy. Whether or not every element succeeds, Japan is building a framework that many governments are likely to study closely. As nations increasingly recognize the strategic importance of digital currency infrastructure, aspects of Tokyo’s approach may well become a blueprint for the next era of global finance.

Source: https://intpolicydigest.org/japan-bets-on-stablecoins-and-crypto-etfs/

Anndy Lian

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com

j j j

February 9th, 2026

The US$71000 Bitcoin bounce lacks foundation but Japan’s rally has real teeth

Asian markets delivered a powerful statement of confidence on Monday, February 9, 2026, as investors embraced a wave of fiscal optimism sweeping across the region. Japan led the charge with extraordinary force as the Nikkei 225 surged more than 2700 points in a single session to reach an intraday historic peak of 57337.07. This remarkable advance followed Prime Minister Sanae Takaichi’s landslide election victory, which immediately reshaped market expectations toward aggressive fiscal stimulus and potential tax cuts.

The political mandate translated directly into investor enthusiasm, particularly for technology and financial shares, which absorbed most of the buying interest. This Japanese momentum proved contagious, creating a positive feedback loop that lifted markets from Shanghai to Sydney as regional investors recalibrated their outlook toward growth rather than caution.

China participated meaningfully in this regional uplift, with the Shanghai Composite climbing 1.25 per cent to approach the 4100 level. The advance carried particular significance because it coincided with the release of consumer price index data showing inflation at 0.8 per cent year over year. This reading suggested a subtle but important shift away from the deflationary pressures that had constrained Chinese markets for an extended period.

Investors interpreted the data as evidence that Beijing’s economic stabilisation efforts might finally be gaining traction, providing a foundation for cautious optimism even amid ongoing structural challenges. The modest inflation print provided a psychological pivot point, allowing market participants to envision a scenario in which domestic demand could gradually reawaken, supporting corporate earnings and asset values across the Chinese equity landscape.

Australia completed the regional trifecta with the S&P ASX 200 closing substantially higher at 8875.10. This performance proved especially notable given that the Reserve Bank of Australia had recently raised interest rates to 3.85 per cent, a move that typically pressures equity valuations. The market demonstrated resilience, absorbing the hawkish monetary policy signal while focusing instead on the broader global risk environment emanating from Tokyo and reinforced by developments in other major economies.

Australian financial and resources stocks benefited from synchronised regional strength, while the currency remained stable against the yen and the dollar, suggesting investors viewed the rally as sustainable rather than speculative. This ability to rally despite tighter monetary conditions underscored the depth of the sentiment shift across Asia-Pacific markets.

The positive sentiment extended beyond Asia as global markets positioned for continued strength. Wall Street futures indicated a constructive open with Dow Jones futures climbing more than 100 points following the index’s historic first-ever close above 50000 on the previous Friday. European markets exhibited cautious optimism, with the STOXX 600 hovering near the 600-point record, reflecting a synchronised global risk appetite.

Commodities participated vigorously in this broad advance as gold breached the symbolic US$5,000 threshold, reaching a weekly high of US$5,037 per ounce before consolidating around US$5,022. Crude oil stabilised as geopolitical tensions in the Middle East eased, removing a persistent risk premium from energy markets. This synchronised global move suggested investors were pricing in a coordinated economic expansion rather than isolated regional strength.

Amid broader environmental risks, the cryptocurrency market recorded a modest but telling advance, rising 0.86 per cent to reach a total valuation of US$2.39 trillion over 24 hours. The move carried distinctive characteristics that revealed crypto’s evolving relationship with traditional markets. Most significantly, the sector demonstrated a 94 per cent correlation with the S&P 500 over the past week, underscoring how digital assets have become tightly integrated into macro-driven market movements rather than operating as an independent asset class.

The primary catalyst for the bounce came from an unverified claim by CNBC’s Jim Cramer, who suggested President Trump would establish a United States Bitcoin reserve, with purchases made at the US$60,000 level. Though entirely speculative, this narrative generated immediate buying pressure, lifting Bitcoin above US$71,000 and pulling the broader market upward in its wake.

Beneath this rumour-driven surface, the rally found genuine technical support. The market had entered deeply oversold territory, with a seven-day relative strength index of just 27, creating fertile conditions for a corrective bounce. Simultaneously, on-chain data revealed substantial accumulation activity, as a whale withdrew 3,500 Bitcoin, equivalent to US$249 million, from the Binance exchange. This combination of extreme oversold conditions and significant institutional-scale buying provided a foundation that extended beyond mere speculation, suggesting some sophisticated participants viewed current levels as attractive entry points despite the absence of fundamental catalysts.

The near-term outlook for both traditional and digital markets now hinges on confirmation of catalysts. For Asian equities, the sustainability of the rally depends on whether Prime Minister Takaichi’s administration moves swiftly to implement concrete fiscal measures that validate current optimism.

For cryptocurrencies, the entire advance remains precariously balanced on an unverified political rumour, making the move inherently fragile. Bitcoin must hold above US$71,000 to maintain bullish momentum, with a break above US$75,000 potentially extending gains toward the 78.6 per cent Fibonacci retracement level corresponding to a US$2.4 trillion total market capitalisation. Conversely, a rejection below US$68,000 would invalidate the bounce, signalling a return to distribution patterns.

My perspective on this market environment recognises two distinct but parallel narratives. Asia’s rally stems from tangible political developments with clear policy implications, creating a foundation for sustained strength if follow-through occurs. The cryptocurrency advance, however, represents pure sentiment speculation lacking institutional or regulatory anchors. This divergence matters profoundly because policy-driven rallies typically exhibit greater durability than rumour-driven spikes.

Yet the exceptionally high correlation between crypto and equities reveals an uncomfortable truth for digital asset investors: their fortunes remain tethered to broader macro sentiment rather than blockchain-specific developments. The market has not achieved true independence; instead, it functions as a high-beta extension of risk assets.

The critical question facing investors now centres on resilience. Will Asian markets maintain their advance when fiscal details emerge, potentially revealing implementation challenges or budget constraints? Will cryptocurrency markets hold their gains if the Bitcoin reserve rumour is officially denied by the White House or the Treasury Department?

The answer likely depends on whether underlying macroeconomic conditions continue to support risk assets generally. With inflation showing signs of stabilisation in China, global growth indicators improving, and geopolitical risks receding temporarily, the environment remains conducive to risk-taking. Investors must recognise that Japan’s policy-driven rally possesses fundamentally stronger underpinnings than crypto’s rumour-fuelled bounce. One represents anticipation of real economic stimulus, the other reflects speculative positioning on unverified political theatre.

Both may rise together in a risk on environment, but their paths will inevitably diverge when market conditions test their respective foundations. The coming days will reveal whether this surge marks the beginning of a sustained expansion or merely a temporary reprieve within a more complex market cycle.

Source: https://e27.co/the-us71000-bitcoin-bounce-lacks-foundation-but-japans-rally-has-real-teeth-20260209/

Anndy Lian

www.anndy.com

j j j

July 28th, 2025

US-Japan ties strengthen markets, crypto rides the wave

The US-Japan trade deal stands out as a major driver, signalling stronger economic ties between two of the world’s largest economies. Over the weekend, the US and the European Union also finalised a trade agreement, albeit one that introduces 15 per cent tariffs on European exports to the US.

Despite the tariffs, the resolution of this deal has been broadly welcomed as a step toward easing trade tensions, fostering a risk-on environment where investors feel emboldened to dive into equities and step back from safe-haven assets like gold.

I see a complex but largely encouraging picture emerging, though one that’s not without its potential pitfalls. Let’s talk about it.

Trade deals fuelling optimism

The US-Japan trade agreement has injected a dose of positivity into global markets. By reducing uncertainties and paving the way for increased trade, this deal promises to strengthen economic activity between these two powerhouses.

Japan, a major player in manufacturing and technology, stands to benefit from easier access to US markets, while American firms could see new opportunities in Japan. This development aligns with a broader narrative of thawing trade relations, which had been strained in recent years by tit-for-tat tariffs and geopolitical friction.

Meanwhile, the US-EU trade deal adds another layer to the story. The inclusion of 15 per cent tariffs on European exports might seem like a wrinkle, but the fact that negotiators reached an agreement at all has outweighed that concern for many investors. After months of saber-rattling and fears of an all-out trade war, this deal offers a measure of stability. It suggests that both sides prefer cooperation over confrontation, even if the terms aren’t perfect.

This resolution reflects a pragmatic approach by the Trump administration, avoiding the escalation that markets had braced for. The tariffs will undoubtedly raise costs for some European exporters, but the clarity provided by the deal could encourage businesses to adapt and invest with greater confidence.

US markets riding the wave

The US stock markets have wasted no time capitalising on this upbeat mood. The S&P 500 climbed 0.40 per cent to notch a fresh record high, while the Nasdaq followed suit with a 0.24 per cent gain. The Dow Jones Industrial Average also joined the rally, posting a 0.47 per cent increase.

These gains underscore the strength of the US corporate sector, which has delivered a solid earnings season so far. Companies across industries have reported resilient profits, defying earlier worries about slowing growth. For investors, this combination of strong fundamentals and positive trade news has been a green light to push equities higher.

The VIX, often dubbed Wall Street’s fear gauge, offers another clue to the prevailing sentiment. It slipped from 15.39 to 14.93, a modest but meaningful drop that signals reduced anxiety about market volatility.

Historically, a VIX below 20 indicates a relatively calm market, and this easing aligns with the risk-on vibe. This decline reflects a collective sigh of relief among traders, who see fewer immediate threats on the horizon. However, it’s worth noting that the VIX remains above its long-term average, suggesting that some underlying caution persists.

Bond yields and the dollar tell a mixed story

In contrast to the stock market’s exuberance, US Treasury yields have painted a more complicated picture. The 10-year yield edged down by 0.8 basis points to 4.388 per cent, while the two-year yield ticked up by 0.7 basis points to 3.923 per cent. This divergence hints at differing expectations for the short and long term.

The dip in the 10-year yield suggests that investors anticipate stable or even lower interest rates over the longer haul, perhaps due to confidence in the Federal Reserve’s ability to keep inflation in check. Conversely, the slight rise in the 2-year yield could reflect near-term uncertainty, possibly tied to upcoming economic data or speculation about rate hikes.

The US Dollar Index, up 0.28 per cent, has also benefited from this environment. A stronger dollar often accompanies positive sentiment about the US economy, and the trade deals have reinforced that narrative.

Meanwhile, gold took a hit, dropping 0.93 per cent as investors shed safe-haven assets in favour of riskier bets. Brent crude oil also slipped 1.1 per cent to US$68 per barrel, which might signal concerns about global demand despite the trade optimism.

Asian markets and crypto add context

Across the Pacific, Asian equities have shown a more cautious response. Last week, many markets closed lower as investors eyed this week’s Federal Open Market Committee meeting and the approaching US trade tariff deadline.

Today’s early trading saw a mixed start, contrasting with US equity index futures, which point to a higher open stateside. This regional divergence suggests that while the US enjoys a tailwind, Asia remains wary of unresolved trade issues and their local economic implications.

The cryptocurrency market, however, has mirrored the broader risk-on sentiment with its flair. Bitcoin, hovering near US$119,000, shrugged off a massive sale by Galaxy Digital, which unloaded 80,000 BTC worth over US$9 billion for a Satoshi-era investor.

Prices dipped briefly from $118,000 to $115,000 before bouncing back by Sunday. Analysts point to this resilience as evidence of Bitcoin’s maturation into a liquid, robust market. It’s a testament to how far the crypto industry has come since its volatile early days.

Ethereum, meanwhile, has stolen the spotlight. It’s spot ETFs raked in US$1.85 billion in net inflows for the week ending July 25, 2025, dwarfing Bitcoin ETFs’ US$72.06 million. Over the past three weeks, Ethereum ETFs have amassed US$4.94 billion, bringing their total net assets to US$20.66 billion.

This surge ties into what some refer to as the Utility Season narrative, where investors are drawn to Ethereum’s versatility in decentralised finance, NFTs, and beyond. Bitcoin’s store-of-value appeal remains strong, but Ethereum’s growth hints at a shift toward assets with broader functionality. I see this as a fascinating evolution in how investors weigh risk and reward.

What’s next?

From my perspective, the global risk sentiment feels like a tightrope walk. The trade deals and US earnings have laid a solid foundation, but the mixed signals from bonds, Asia, and commodities remind us that confidence is fragile.

The crypto market’s strength, particularly Ethereum’s rise, adds an intriguing dimension, suggesting that risk appetite extends beyond traditional assets.

Looking ahead, this week promises a deluge of data that could either solidify or shake this optimism. The US second-quarter GDP report, the July Personal Consumption Expenditures (PCE) index, and the July jobs report will provide a clearer view of the economy’s health.

Monetary policy decisions from the US, Canada, and Japan will also loom large, as central banks grapple with growth and inflation. The August 1 reciprocal tariff deadline adds another wildcard; any misstep could dent the current mood.

Source: https://e27.co/us-japan-ties-strengthen-markets-crypto-rides-the-wave-20250728/