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Japan's Finance Minister Says Crypto Assets Can be Part of Diversified Portfolio
Kato's remarks come amid concerns over Japan's high debt-to-GDP ratio and the potential for financial repression and yen depreciation.
Aug 25, 2025, 9:07 a.m.
What to know:
- Japan's Finance Minister Katsunobu Katō stated that cryptocurrencies can be part of a diversified investment portfolio despite their high volatility.
- The Japanese government aims to foster innovation in the crypto sector without imposing excessive regulations.
- Kato's remarks come amid concerns over Japan's high debt-to-GDP ratio and the potential for financial repression and yen depreciation.
Japan's Finance Minister Katsunobu Kato said on Monday that cryptocurrencies can be part of a diversified portfolio.
"Crypto assets have risks surrounding high volatility, but through building an appropriate investment environment, they could be part of diversified investments," Kato said while speaking at an event in Tokyo, according to Bloomberg.
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The minister added that the government has been trying to ensure that innovation isn't stifled by excessive regulation.
Kato's comments are particularly notable in the context of Japan's debt-to-GDP ratio exceeding 200%, which raises concerns about imminent financial repression and potential depreciation of the yen.
Financial repression involves policies aimed at reducing government debt burdens through measures such as inflation, low or negative real interest rates, currency depreciation and capital controls.
These policies tend to erode returns on traditional fixed-income and cash holdings, thereby boosting the appeal of alternative investments, such as cryptocurrencies, which offer real returns and diversification.
Read more: Bitcoin Chalks Out Lower Price High After Powell, Ether Prints Doji at Lifetime Peak
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- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
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Coinbase Sees Crypto Recovery Ahead as Liquidity Improves and Fed Rate Cut Odds Climb
The crypto exchange also took note of a so-called AI bubble that continues to go strong and a weaker U.S. dollar.
Wat u moet weten:
- Coinbase Institutional is seeing a potential December recovery in crypto, citing improving liquidity and a shift in macroeconomic conditions that could favor risk assets like bitcoin.
- The firm's optimism is driven by rising odds of Federal Reserve rate cuts, with markets pricing in a 93% chance easing next week, and improving liquidity conditions.
- Several recent institutional developments, including Vanguard's crypto ETF policy reversal and Bank of America's greenlighting of crypto allocations, have contributed to bitcoin's rebound from recent lows.
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