Jay stated that he will be thoroughly surprised if this move doesn’t result in larger offerings for institutions. He added that the yen spread going down can be mitigated with bond interest of A-credit rating, with almost immediate XRP exposure. It is worth noting that the Yen carry trade continues to unwind as the Bank of Japan (BOJ) moves to hike rates.
Why This Mechanism Works Better Than Buying The Cryptocurrency OutrightThe pundit also mentioned that this mechanism uses the carry trade as a distribution channel to build out liquidity. He noted that worldwide, Japan is used for its cheap Yen and repatriated primarily to the U.S. Meanwhile, Jay also highlighted how institutions could take advantage of these tokenized bonds and earn XRP.
