Core Insights - The report from ARK Invest highlights that the annual transaction volume of stablecoins reached $15.6 trillion in 2024, surpassing the total transaction volume of Visa and Mastercard, with a record daily transaction of $270 billion in December 2024 [2] - The stablecoin market is expanding, with Bitcoin prices exceeding $100,000 and the DeFi ecosystem becoming increasingly rich, indicating a new phase of regulatory innovation and rapid development in the global crypto asset market [2] - The integration of stablecoins with traditional payment systems is accelerating, as banks expand crypto asset-related services and the barriers between capital markets and crypto markets are gradually being dismantled [2] Group 1: Integration of Stablecoins and Payment Systems - Stablecoins offer significant advantages in payment time and cost, with cross-border payments using stablecoins completing in under one hour compared to five days for traditional bank transfers [4] - The average cost of cross-border remittances in traditional modes is 6.62%, while sending stablecoins via high-performance blockchains like Solana costs approximately $0.00025 [4] - The use of stablecoins in payment scenarios has rapidly increased, from $1.69 billion in January 2019 to $95.144 billion by July 2025, with a total transfer amount of approximately $27.16 trillion in 2024 [5] Group 2: Strategic Investments and Collaborations - Tether, the issuer of USDT, invested strategically in fintech company Fizen to enhance USDT's global application and payment infrastructure [6] - Circle, the issuer of USDC, partnered with GCash in the Philippines to allow users to receive, purchase, hold, or trade USDC [6] - Major payment companies like PayPal and Stripe are expanding their stablecoin payment capabilities, with PayPal launching its own stablecoin and Stripe acquiring a stablecoin platform [6][8] Group 3: Banking Institutions and Crypto Collaborations - Banks are increasingly exploring stablecoin issuance, with notable examples including JPMorgan's launch of its stablecoin and Standard Chartered's entry into stablecoin issuance testing [8] - The number of banks participating in stablecoin and crypto asset services has rapidly increased, with institutions like ZA Bank and Emirates NBD offering crypto asset trading services [8][9] - BNY Mellon has expanded its services to include transactions with stablecoin issuer Circle, enhancing the liquidity of crypto asset trading [9] Group 4: Capital Market and Crypto Market Integration - Tokenization via blockchain allows for instant buying, selling, and transferring of assets, significantly reducing transaction costs and risks [13] - The market for Real World Asset (RWA) tokenization has doubled in size, with over $22 billion in market size and nearly 190 issuers as of April 2025 [13] - Major financial institutions are accelerating their tokenization processes, with Fidelity and Franklin Templeton launching tokenized funds [13][14] Group 5: Regulatory Policies Supporting Crypto Innovation - The U.S. regulatory stance on stablecoins and crypto assets is shifting towards supporting innovation and regulatory development, with significant changes following Trump's re-election [23] - Multiple countries are accelerating their regulatory frameworks for stablecoins and crypto assets, influenced by the U.S. policy shift [24] - The establishment of strategic Bitcoin reserves by the U.S. government is prompting other nations to consider similar initiatives, enhancing the legitimacy of crypto assets [25][26]

Core Viewpoint - The article discusses the increasing interest and regulatory discussions surrounding cryptocurrency ETFs in Japan, particularly in the context of the recent approval of Bitcoin spot ETFs in the United States, which has sparked a demand for similar investment vehicles in Japan [2][5]. Group 1: Regulatory Developments in Japan - The Japanese government is actively discussing the regulation of cryptocurrency assets, with the Liberal Democratic Party releasing a "Web3 White Paper 2024" that includes recommendations for cryptocurrency ETFs [5]. - In March 2025, the Liberal Democratic Party proposed a reform plan to classify cryptocurrency as a new asset category distinct from securities, aiming to enhance market health and investor protection [5][6]. - The Financial Services Agency of Japan published a discussion document in April 2025, suggesting a reevaluation of the legal framework surrounding cryptocurrency under the Financial Instruments and Exchange Act [6]. Group 2: Market Demand for Cryptocurrency ETFs - As of January 2025, over 12 million accounts have been opened on cryptocurrency exchanges in Japan, with a total custody balance exceeding 5 trillion yen, indicating strong interest in cryptocurrency investments [6]. - A survey conducted by Nomura Holdings in June 2024 revealed that 53% of institutional investors prefer investing in cryptocurrency through listed investment trusts (ETFs), while 31% favor direct investment [7][10]. - Among individual investors, 42% expressed interest in domestic and foreign investment trusts and ETFs, significantly higher than the 11% interested in direct cryptocurrency holdings [8][10]. Group 3: Impact of Bitcoin Spot ETFs - The approval of Bitcoin spot ETFs in the U.S. has led to increased attention and investment in cryptocurrency, with institutional investors holding approximately $27 billion in Bitcoin spot ETFs by the end of 2024 [13][14]. - The introduction of Bitcoin spot ETFs has resulted in significant capital inflows, with a reported net inflow of about $900 million on a single day in April 2025, pushing the total net asset value of Bitcoin spot ETFs to over $100 billion [25]. - Bitcoin is viewed as a low-correlation asset to traditional financial assets, enhancing portfolio diversification for investors [26][27]. Group 4: Institutional and Tax Considerations - The establishment of cryptocurrency ETFs in Japan could follow several legal frameworks, including investment trusts under the Investment Trusts and Investment Corporations Act and foreign fund introductions [29][30]. - Tax treatment for cryptocurrency transactions in Japan currently categorizes profits as miscellaneous income, while ETF trading profits are classified as capital gains, leading to potential inconsistencies in tax treatment [34]. - The article suggests that aligning the tax treatment of cryptocurrency ETFs with that of traditional financial assets could enhance market liquidity and investor participation [34].