Metaplanet is using its newly acquired Japanese brokerage business as a platform for Bitcoin-related financing products. According to Benchmark, the company is envisioning launching Bitcoin-backed bonds with an annualized yield of approximately 4% to 6%. However, this product is still in the planning stage, and the launch date and specific terms have not yet been announced.
Entering the securities business after acquiring a brokerage firm
Metaplanet previously acquired Japanese brokerage Siiibo Securities for 2.1 billion yen, and subsequently renamed it Metaplanet Securities in July. This subsidiary is positioned as a digital asset investment banking business, focusing on Bitcoin-related financial products.
This transaction also granted Metaplanet a Class 1 financial instruments business license under the supervision of Japan's Financial Services Agency. This license allows the company to design and sell securities products in Japan. According to company executives, applying for a similar license from scratch typically takes several quarters or even longer.
The goal is to provide businesses with Bitcoin financing tools.
Benchmark analyst Mark Palmer stated that the market had previously underestimated the significance of this acquisition. In his assessment, Metaplanet's aim is not merely to finance its own Bitcoin purchases, but also to transform its securities subsidiary into a platform serving more companies employing Bitcoin treasury strategies.
"Bitbonds" are instruments that help companies raise funds through bond issuance and then use them to purchase Bitcoin. Based on currently disclosed plans, the initial coupon rate for these bonds is likely to be between 4% and 6%.
- Target coupon rate: approximately 4% to 6%
- Main use: Providing debt financing for businesses to purchase BTC
- Platform Entity: Metaplanet Securities
On-chain transactions and stablecoin settlement may be introduced later.
According to Benchmark's account of the company's plans, Metaplanet also hopes to move these bonds on-chain and introduce stablecoin settlement, while establishing a secondary market. This means its business direction may extend from a single Bitcoin treasury company to digital securities and crypto capital market infrastructure.
Prior to this, Metaplanet had launched a joint study with JPYC, the issuer of the Japanese yen stablecoin, Progmat, a tokenization platform, and Metaplanet Securities, to assess whether Bitcoin could serve as collateral for digital corporate bonds and other credit products, or as a credit enhancement tool.
The research covers product design, regulatory requirements, investor protection, distribution methods, and stablecoin settlement, as well as arrangements for security tokens, 24/7 trading, and daily interest accrual.
The terms of the issuance have not yet been finalized.
Currently, Metaplanet has not disclosed the final issuance terms, nor has it announced the scope of qualified investors, collateral ratios, or official launch date. Therefore, the 4% to 6% yield is still part of a long-term plan and not a bond issuance that has already commenced.
The company previously stated that the joint research does not equate to approval of a commercial product. Further progress depends on product approval, communication with Japanese regulatory authorities, and market demand for this type of Bitcoin-backed corporate bond.
Additional information:Benchmark maintains its buy rating on Metaplanet stock and a price target of 405 yen. The report notes that the company holds 43,000 BTC, worth nearly $2.8 billion at current prices, making it one of the world's third-largest publicly traded Bitcoin holders.
