Key facts
- Japanese companies are diversifying reserves into Bitcoin and XRP due to the yen's significant depreciation.
- SBI VC Trade has seen a substantial increase in corporate demand for these cryptocurrencies.
- The yen's weakness is attributed to the interest-rate differential between the U.S. and Japan.
- Bitcoin has seen a weekly price increase of 6.1%, trading near $62,650.
Japanese companies are increasingly turning to cryptocurrencies like Bitcoin and XRP as a hedge against the yen's sharp depreciation, which has reached its weakest level in four decades. SBI VC Trade, a crypto exchange, reported a significant rise in corporate demand for these digital assets, with its registered accounts doubling to over 2 million. This trend is driven by the widening interest-rate gap between the hawkish U.S. Federal Reserve and the Bank of Japan, which is still maintaining a loose monetary policy. Holding yen has become a losing proposition, pushing firms to seek alternative, harder assets for their reserves. SBI VC Trade noted that some companies are even distributing Bitcoin or XRP as shareholder perks. This move aligns with a broader market pattern where a weak yen fuels the carry trade, and a portion of these flows is now being directed into regulated crypto channels within Japan.