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Japan policy push for domestic assets highlights store-of-value appeal

CoinDesk notes Japan’s plan to steer the GPIF toward domestic holdings comes as yen pressure and higher bond yields raise the risk of short term volatility for limited supply assets.

Reported · Written up by our desk · Market Structure

CoinDesk said Japan’s Finance Minister Satsuki Katayama flagged a policy shift that could boost demand for assets viewed as store-of-value, including bitcoin and gold, even as it may create short term market stress.

The government is actively steering the $2 trillion Government Pension Investment Fund, the world’s largest pension fund, to substantially increase investments in domestic financial assets, including government bonds, as Japan works to rebalance household financial assets away from cash and deposits toward stocks, mutual funds, and bonds, CoinDesk reported.

CoinDesk linked the push to strains from Japan’s public debt load, noting that debt-to-GDP has been above 200%, which has contributed to bond yields rising to three-decade highs and putting the yen under pressure.

CoinDesk also pointed to GPIF’s overseas exposure as a potential near term risk, saying the fund holds $931 billion in foreign assets, including $232.1 billion in U.S. Treasuries.

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