As of August 7, 2025, 408 stocks in the TSE Prime Market hit year-to-date highs. This could signal market froth—or the emergence of a stock picker’s market, where select equities outperform even as broader indices soften.
Among emerging themes, stablecoins warrant attention.
Though it’s easy to dismiss stablecoin-related stocks as crypto hype, doing so risks overlooking real shifts in financial infrastructure. Stablecoins—digital assets pegged to fiat currencies like USD, EUR, or JPY—offer the speed of crypto with the stability of traditional money.
Why Stablecoins Matter
Institutional Adoption: Firms like Coinbase, Circle, Amazon, and Walmart are exploring stablecoin integration to cut transaction costs and improve payment efficiency.
Regulatory Momentum: The U.S. GENIUS Act has boosted sector legitimacy, encouraging infrastructure investment.
Operational Utility: Stablecoins support cross-border payments, remittances, and treasury management—functions rooted in real-world demand.
Risks to Consider
De-pegging Events: TerraUSD’s collapse reminds us that “stable” isn’t always safe.
Fraud and Finality: Transactions are irreversible, increasing fraud exposure and limiting recourse.
Japan’s Strategic Entry
On August 18, 2025, Japan’s Financial Services Agency registered fintech firm JPYC as a money transfer business, authorizing it to issue the country’s first yen-pegged stablecoin. Backed by deposits and government bonds, JPYC will maintain a 1:1 value with the yen. Under Japan’s revised Payment Services Act (2023), only licensed entities may issue stablecoins. JPYC’s use cases include remittances, corporate payments, and DeFi. Sales begin in September.
Industry Snapshot (2025)
Market Cap: Over $250 billion, led by USDT and USDC
Transaction Volume: $8.9 trillion (H1 2025)
Applications: Payments, remittances, DeFi, cross-border trade
Growth Drivers
Regulatory clarity (Japan’s Payment Services Act, EU’s MiCA)
Institutional adoption for settlements and treasury
Emerging markets using stablecoins for inflation-resistant savings
Expansion of DeFi and tokenized real-world assets
Outlook
Stablecoins are projected to exceed $1 trillion in market cap by 2035. With transfer fees as low as $0.01, they challenge traditional banking models.
Strategic Approach
Rather than chasing hype, consider stocks that benefit peripherally from stablecoin adoption while maintaining strong fundamentals. Densan is one such name.
I’ve prepared a note outlining how Densan System Holdings (4072) stands to benefit from the stablecoin ecosystem, while continuing to grow its core business.
If you’re interested in learning more about Densan and its growth potential, I’d like to invite you to experience my service—completely free of charge. I am confident that once you discover the value, convenience, and quality I offer, you’ll be glad you gave me a try.
#stablecoin #Densan #Japanesestocks