Metaplanet will launch Bitcoin-supported preferred stocks in Japan. Aiming to provide a yield of 9-10%, Metaplanet's Yen religious products could revolutionize fixed income investment.
Japan's Inflation Investment: Low interest rates, high inflation rates, and Bitcoin-backed securities offer savings a higher yen-based alternative.
Metaplanet, a Japanese-listed company, is preparing to launch a Bitcoin-backed preferred stock. This new financial product could restructure Japan's fixed income market.
With Japan's interest rates historically low, Metaplanet plans to use Bitcoin as collateral to provide Yen religious securities with annual yields of 9-10%.
Issues in Japanese financial markets
Crypto expert Adam Livingston explains that Japanese households own more than 2,200 trillion yen in financial assets. The majority of this money is sitting in cash or deposits that earn interest under 0.23%.
On the other hand, Japan's annual inflation rate is approximately 3.5%. In October 2024, it was 2.3%. It peaked at 4% in January 2025, then only 3.6-3.7% in the next month. This means that most savings are losing value from a real standpoint.
Japan's 10-year government bond yield is currently 1.45%. In March, it was slightly higher at 1.63%. Japanese life insurance companies, which manage approximately 390 trillion yen, are seeking better profits to fulfill their long-term obligations.
Livingston also points out that Japanese regulators are encouraging the development of new financial products that offer higher returns without adding foreign currency risk.
Metaplanet Solutions: Bitcoin Support Priority Stock
Metaplanet aims to address this issue by launching preferred stocks backed by Bitcoin. The shares are issued in Japanese yen and provide high yields of 9-10% per year.
Bitcoin is known for its long-term price hikes and is often seen as a hedge against inflation. This makes it an attractive asset that supports fixed income securities.
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Strategic Growth and Bitcoin Accumulation
Metaplanet is already a major Bitcoin holder, worth more than $1.45 billion at least at 13,350 btc. Livingston says the company can use the funds raised through these preferred stocks to buy more Bitcoin. As their Bitcoin holdings grow, the value of collateral increases. This will allow Metaplanet to lower the coupon rate for future offers and reduce capital costs.
The company's long-term goal is to accumulate 210,000 BTC, which accounts for about 1% of its total Bitcoin supply.
Major changes in Japan's financial system
Livingston believes this new product is not just another product. This represents a major change in Japan's financial system. Round Bitcoin support investments can provide better yields to savers, modernize capital markets and avoid the risk of foreign currency exposure.
The move could set new standards for bond investment in Japan.