Good morning, Asia. Here’s what’s making news in the markets:
Welcome to the Asia Morning Briefing, a daily overview of top stories in US hours and an overview of market movements and analysis. For a detailed overview of US markets, see CoinDesk’s Crypto Daybook Americas.
The Korean won and the Taiwanese dollar cannot really leave their shores, bound by local rules born in the wake of the 1997 financial crisis that keep them at home.
Japan’s yen, on the other hand, floats freely. This convertibility makes it the perfect candidate for a stablecoin, bringing Japan’s low-interest liquidity into DeFi, where traders can chase higher returns in dollar-linked assets.
With the launch of JPYC’s yen-backed stablecoin this week, Japan has created Asia’s first truly global fiat-pegged token, one that can circulate offshore thanks to the yen’s full convertibility.
Its arrival could turn Japan’s low-interest liquidity into a new funding source for decentralized finance, allowing traders to borrow cheap digital yen and chase higher returns in dollar-linked assets.
In doing so, the yen transmission, a staple of global markets for decades, now has a programmable, blockchain-based twin that links DeFi yields directly to Bank of Japan policy.
The launch comes as the Bank of Japan keeps interest rates anchored at 0.5%, the highest level since 2008 but still well below global peers.
Policymakers remain divided on when to hike again, with hawks pushing for a 0.75% move as early as year-end and doves urging patience amid uncertainty from US tariffs and domestic wage growth. This low interest rate environment, even in a tightening cycle, leaves the yen among the cheapest funding currencies in the world.
Even if the BOJ raises interest rates, on-chain yields still dwarf anything available in Japan’s money markets.
Platforms such as Maple, Lista and Stream Finance provide annual returns between 6% and 14%, well above Japan’s benchmark of less than 1%. A trader borrowing digital yen at even 0.75% will still find ample diversification by swapping into dollar-denominated assets or depositing into DeFi pools like USDC Syrup or BNSOL.
But it’s all hypothetical. Right now, the JPYC caps redemptions at $6500 per day (¥1 million) – not exactly an amount that can move markets.
Perhaps this is a reminder that even digital money cannot completely escape Japan’s cautious financial architecture.
Tokyo’s sense of restraint remains baked into the code, and while the chain trade may be new, Japan’s cautious hand on the throttle is not.
Market movements:
BTC: Bitcoin is trading at $110,432, down 1.6% over the past 24 hours, as US investor demand continued to ease after September’s surge. CryptoQuant data shows spot ETF outflows averaging 281 BTC over the past week and a fading Coinbase premium, suggesting profit-taking and waning domestic appetite after the $126K rally.
ETH: Ether hovered near $3,914, up 1.5%, mirroring Bitcoin’s slowdown. ETF inflows have nearly stalled since mid-August, and CME’s six-month basis has fallen to 3%, pointing to reduced leveraged exposure and cautious positioning ahead of key US macro data.
Gold: Gold was trading around $4,020 per ounces, steady after this week’s volatility as traders balanced safe demand with easing inflation expectations and a firmer dollar.
Nikkei 225: Asia-Pacific markets were mixed on Thursday after the Fed cut interest rates by 25 basis points as Chairman Jerome Powell warned that a move in December was not guaranteed and investors awaited the Trump-Xi meeting and details of Seoul’s new US trade deal.
Elsewhere in Crypto:
- DRW in talks to raise $500 million for Canton Token Treasury (Bloomberg)
- Solana event in China canceled as Beijing stablecoin warning stirs unrest (SCMP)
- Kraken Top Crypto Exchange in EU Lobby Use Ahead of Coinbase (Decrypt)
