MetaPlanet, a publicly listed company in Japan, is preparing to launch preferred shares using Bitcoin as collateral, with an interest rate of 9-10% per year calculated in yen.
This new financial product promises to change the fixed-income market in Japan, meeting the demand for high returns in the context of record low interest rates and inflation reducing the value of idle money.
MAIN CONTENT
The Japanese public maintains over 2,200 trillion yen in assets with interest rates below 0.23%.
MetaPlanet issues preferred shares in yen, backed by Bitcoin with a significant yield of 9-10% per year.
This product marks a major innovation in the Japanese financial system, helping investors avoid foreign exchange risks.
What is the current issue in the Japanese financial market?
Cryptocurrency expert Adam Livingston points out that the Japanese public is holding over 2,200 trillion yen in financial assets, most of which are in cash or savings accounts with very low interest rates, below 0.23%. Meanwhile, the average inflation is around 3.5%, causing the real value of idle money to decline sharply.
For example, in October 2024, inflation is 2.3%, peaking at 4% in January 2025 and maintaining around 3.6-3.7% in the following months. The 10-year government bond yield is only 1.45%, significantly lower than inflation. Japanese life insurance companies, managing about 390 trillion yen, are also seeking higher yields to meet long-term obligations.
"The market needs new financial products that provide higher returns without foreign exchange risks, helping to create a more sustainable and attractive asset class for individual investors."
Adam Livingston, Cryptocurrency Expert, 2024
How does MetaPlanet address this issue with Bitcoin preferred stocks?
MetaPlanet presents a preferred stock product issued in Japanese yen and using Bitcoin as collateral. This product is expected to yield an annual return of 9 to 10%, significantly higher than the market interest rate of 1.45% for government bonds.
Bitcoin is seen as an effective inflation hedge due to its long-term price appreciation potential and value preservation, making it an ideal choice to back fixed-income securities.
What is MetaPlanet's growth and Bitcoin accumulation strategy?
MetaPlanet is currently quite strong, holding at least 13,350 BTC, equivalent to over 1.45 billion USD at current prices. The company plans to use the capital raised from the issuance of preferred shares to continue buying more Bitcoin, thereby increasing the value of its collateral.
Increasing Bitcoin reserves will help reduce capital costs, potentially lowering the interest rate on preferred stocks in the future while optimizing financial efficiency.
MetaPlanet's long-term goal is to own 210,000 BTC, accounting for about 1% of the total current supply of Bitcoin.
"Large-scale Bitcoin accumulation allows us to adjust capital costs and offer attractive financial products, contributing to a new standard in the Japanese market."
MetaPlanet CEO, Statement 2024
What major changes will occur in the Japanese financial system?
According to Adam Livingston, the preferred stock product secured by Bitcoin is not only a new product but also signals a fundamental reform in the Japanese financial system. This opens up high-profit potential for individual investors while maintaining low foreign exchange risk due to issuance in yen.
Investment products like these have the potential to drive the modernization of the capital market and build new trust from depositors, making the fixed-income market more attractive and sustainable.
Frequently Asked Questions
What are Bitcoin preferred stocks?
It is a stock issued in yen, using Bitcoin as collateral to provide high and stable yields.Why did MetaPlanet choose Bitcoin as collateral?
Bitcoin is a digital asset with long-term price appreciation potential and effective inflation resistance.What are the advantages of this preferred stock compared to government bonds?
Higher yields (9-10% compared to 1.45%) and no foreign exchange risk because it is issued in Japanese yen.What are MetaPlanet's plans with the additional capital?
To save more Bitcoin, aiming to increase the value of collateral and reduce capital costs.Can this product change the Japanese financial market?
Yes, this is a significant step forward, helping to modernize and diversify the fixed-income market in Japan.
Source: https://tintucbitcoin.com/bitcoin-metaplanet-ra-mat-co-phieu-10/
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