SBI VC Trade said users could lend assets directly to its platform, but added that the company may re-lend funds as part of its operations. SBI Holdings’ digital asset arm, SBI VC Trade, said it will launch a USDC lending service in Japan on Thursday, allowing retail users to lend stablecoins to the platform under fixed-term agreements in exchange for returns. On Wednesday, the company said users will be able to lend Circle’s USDC (USDC) stablecoin to the platform and receive interest payments, with a maximum application of 5,000 USDC per offering. The product is structured as a loan to SBI VC Trade rather than a deposit, meaning users take direct counterparty risk. SBI said it may also re-lend the borrowed USDC as part of its operations. The launch marks a further step in Japan’s stablecoin rollout, bringing a consumer-accessible USDC yield product to market through a licensed domestic platform. Read more
Japanese PM Sanae Takaichi said she had no knowledge of the token, as Kyodo reported the FSA was considering whether unregistered operators were involved. A cryptocurrency using the name of Japanese Prime Minister Sanae Takaichi briefly surged to a market value of about $27.7 million before sliding sharply after Takaichi publicly denied any connection to the token. In a statement posted on X, Takaichi said she had no knowledge of the “Sanae Token,” adding that neither she nor her office had granted any approval related to it. She said the clarification was issued to prevent public misunderstanding. “Due to the name, it seems there are various misunderstandings, but regarding this token, I have absolutely no knowledge of it, nor has my office been informed about what this token entails,” she wrote. Read more
BOJ Governor Kazuo Ueda said the experiments will examine links between blockchain systems and Japan’s existing settlement infrastructure. The Bank of Japan will conduct technical experiments using blockchain technology to settle deposits held at the central bank by financial institutions, according to BOJ Governor Kazuo Ueda. In a speech posted Tuesday titled “The New Financial Ecosystem and the Role of Central Banks,” Ueda said a sandbox project is underway to test settlement using central bank money “in the form of current account deposits on a system that uses blockchains.” The experiments will explore “methods of connection with the existing system” and examine use cases, including “domestic interbank settlement and securities settlement.” Read more
Japan’s regulators and conglomerates are working to bring one of the world’s key funding currencies into DeFi, but retail activity remains muted. Japan is preparing its financial system for a world of stablecoins and tokenized assets, with banks, regulators and financial conglomerates working to bring the yen economy onchain. The country is the world’s fourth-largest economy, and its yen is one of the most important currencies in global finance. According to the International Monetary Fund, the yen accounted for 5.82% of global foreign exchange reserves, ranking third worldwide. A major reason for the yen’s systemic importance is the carry trade. Due to low interest rates, investors borrow cheap yen, convert it into other currencies and invest in higher-yield assets, making the yen one of the most trusted funding currencies for global markets. Read more
Japanese Prime Minister Sanae Takaichi’s coalition swept to a historic election win on Sunday, paving the way for promised tax cuts that have spooked financial markets and military spending aimed at countering China. The conservative Takaichi, Japan’s first female leader who says she is inspired by Britain’s “Iron Lady” Margaret Thatcher, was projected to deliver as many as 328 of the 465 seats in parliament’s lower house for her Liberal Democratic Party (LDP). The LDP alone sailed past the 233 seats needed for a majority less than two hours after polls closed, on track for one of its best-ever election results. With her coalition partner, the Japan Innovation Party, known as Ishin, Takaichi now has a supermajority of two-thirds of seats, easing her legislative agenda as she can override the upper chamber, which she does not control. Winter election brings blizzard of votes “This election involved major policy shifts — particularly a major shift in economic and fiscal policy, as well as strengthening security...