The yen is trading near its weakest level in four decades, and Japanese companies are moving cryptocurrencies onto their balance sheets to escape it.
SBI VC Trade said on Tuesday that corporate demand for bitcoin and
Hedge funds have become more bearish on the yen since 2007, increasing bets on further losses to nearly 138,000 contracts as of June 30, according to CFTC data. The dollar is bought around 162 yen in the Asian morning hours on Wednesday.
The driving factor is the interest rate gap between a hawkish US Fed and a Bank of Japan that is still far behind, the same gap that makes holding cash in yen a losing position and causes companies to seek out stronger assets.
SBI, the crypto arm of Tokyo-based SBI Holdings, noted that demand for its corporate service has grown alongside companies distributing bitcoin or XRP through shareholder benefit programs.
The move fits a pattern the market has seen all month. A weak yen has fueled the carry trade, where investors borrow cheaply in yen to buy higher-yielding assets elsewhere, and some of that flow now reaches cryptocurrencies through regulated Japanese channels rather than offshore channels.
Bitcoin traded near $62,650 on Tuesday, up 6.1% on the week, according to data from CoinDesk.
