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Japan’s 10-year Bond Yield Hits Highest Since 2008

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Japan’s benchmark 10-year government bond (JGB) yield rose to a 17-year high, reflecting concerns that could spill over to bond markets across other developed economies and reduce demand for riskier assets such as cryptocurrencies and equities.

The yield rose above 1.61%, the highest since 2008. The move follows a dismal auction of the 20-year JGB on Tuesday, indicating investor concern about higher government spending and tax cuts.

Yields on longer-term debt rose to highs seen last month, with the 20-year bond hitting 2.64% and the 30-year climbing to 3.19%, according to data source TradingView.

The increases could easily spill over into U.S. Treasury notes, potentially causing a tightening of financial conditions. For years, the yields remained depressed due to the Bank of Japan’s ultra-easy monetary policy. That capped yields worldwide, especially in advanced nations.

Veteran lawmaker calls for BOJ rate hike

Veteran ruling party lawmaker Taro Kono told Reuters on Tuesday that Japan should raise interest rates and address fiscal imprudence to strengthen the weak yen, which has proven to be inflationary.

The central bank ended a massive, decade-long stimulus program last year and raised short-term rates to 0.5% in January. Since then, it has held rates steady.

Kono’s comment follows a similar remark by the U.S. Treasury Secretary Scott Bessent, who asked the BOJ to raise rates and put a floor under the yen.



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U.K. 30-Year Yield Tops U.S. as Pressure Mounts on Government Borrowing
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U.K. 30-Year Yield Tops U.S. as Pressure Mounts on Government Borrowing

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The U.K.’s fragile fiscal situation is back in focus as yields on long-term government bonds surged, topping their U.S. counterparts for the first time this century.

The 30-year U.K. government bond offered a yield of 5.61% at press time. That’s 68 basis points more than the 30-year U.S. Treasury yield according to data source TradingView.

The widening gap means that the market is demanding a significant premium to hold U.K. debt versus Treasury notes, a sign that investors are becoming increasingly wary about the U.K.’s fiscal situation.

The U.K. gilt market (bond market) has taken on a life of its own, as the country faces structural, long-term economic challenges that it has built up over decades; yet, this is not a uniquely British issue. Japan, the EU, and the U.S. have also seen bond yields rise as debt burdens and inflation pressures mount.

This indebtedness of the advanced world supports the bullish case for perceived store-of-value assets like bitcoin

and gold.

Focus on U.K. inflation report

Wednesday’s U.K. inflation report is critical for bond markets.

The data is expected to show that both the headline consumer price index (CPI) and core CPI remained well above the 2% target in July, according to data source Trading Economics. The headline CPI is expected to be 3.7% year-over-year (up from the previous 3.6%), while core inflation is forecast to remain at 3.7% (unchanged from the prior month). The data will hit the wires just weeks after the Bank of England cut rates to 4%.

Expectations for sticky inflation couldn’t have come at a worse time, as the GDP growth has weakened and unemployment has begun to edge higher from secular lows.

Repeat of 2022 crisis?

A hot inflation report could only worsen the debt-bond dynamics by accelerating the uptrend in yields. This calls for both crypto and traditional market traders to remain vigilant for a 2022-style volatility in the U.K. markets.

The hardening of the 30-year gilt yield, representing the long end of the curve, played a big role in the liability-driven investment (LDI) pension crisis of 2022, which erupted under Liz Truss. The longer duration yield is now testing the upper bound of a long-term trend and could rise to 5.7%, the highest level since May 1998.

LDI strategies use leverage to hedge pension liabilities. When gilt yields spiked in 2022, collateral calls led to a mass sale of gilts, creating a feedback loop that threatened financial stability. That prompted the Bank of England to intervene with emergency purchases to prevent a systemic crisis.

If Wednesday’s inflation report runs hotter than expected, gilt yields could break new highs, putting further pressure on the government and raising the risk of another LDI-style crisis.



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A Startup Is Looking to Pay 30% Yield by Tokenizing AI Infrastructure

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Compute Labs, a startup that turns the industrial-grade GPUs that power AI data centres into fractionalized yield-bearing tokens, and enterprise AI cloud firm NexGen Cloud, have joined forces to begin distributing ownership of a $1 million “public vault,” the companies said on Wednesday.

The power and profitability of AI infrastructure are largely centralized and generally confined to hyperscalers like AWS or large venture-backed firms. However, Compute Labs is attempting to bring its token holders direct access to the earning potential of enterprise hardware such as NVIDIA H200 GPUs, which would retail at around $30,000 for a single unit.

“For investors, this pilot [project] represents the first-ever opportunity to earn stablecoin yield directly from live AI compute without having to manage the hardware or rely on overvalued public equities,” Compute Labs said in a press release.

Europe’s NexGen, which gives its customers access to AI computing power and had raised $45 million in April, will handle the initial financing through its investment arm InfraHub Compute.

How it works

The funds raised will be used by InfraHub to buy GPUs, which will then be fractionalised for investors and customers, according to the press release.

The first “vault” has already raised $1 million from investors. The initial vault will have top-of-the-range NVIDIA GPUs, which are currently used for “AI training and inference,” the firm said. The firms are projecting to have a yield, in USDC, that might go over 30% per year based on active enterprise GPU rental agreements.

Nikolay Filichkin, chief business officer at Compute Labs, talks to the type of data center operators who might have additional floor space and are looking to add extra capacity; the data center equivalent of “mom and pop shops,” he said in an interview with CoinDesk.

“When the data center is using the GPU owned by an investor, Compute Labs manages that through its protocol and balance sheet, and leases the GPUs to the data center,” Filichkin said in an interview. “The net revenue, minus things like hosting and energy costs, goes back to the investor who owns a slice of the GPU processing power.”

The firms tokenize and fractionalize these GPUs within the vaults, which can then be offered to individual investors in increments of a few hundred dollars. NFTs are also used to distinguish between varying types of tokenized GPU hardware investments.

Compute Labs is backed by Protocol Labs, OKX Ventures, CMS Holdings and Amber Group, among others. The firm operates with a flat 10% fee structure across tokenization, asset management and performance yield.

“This model assigns concrete, tradable value to each GPU cycle, rationalizing the AI market by removing the speculation of investors, and directly linking supply, demand, and price,” said Youlian Tzanev, co-founder and chief strategy officer at NexGen Cloud.



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Franklin Templeton Debuts 'Intraday Yield' Feature for Benji
Crypto Trends

Franklin Templeton Debuts ‘Intraday Yield’ Feature for Benji

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Franklin Templeton, an investment management company with $1.53 trillion in assets under management, has debuted a feature that offers investors yield down to the second when holding tokenized assets.

According to a Tuesday announcement, the “Intraday Yield” feature will allow investors to accrue yield proportional to the time they hold a tokenized security, even if it’s transferred before the day’s end. In addition, investors can earn yield on non-banking days, including holidays and weekends.

The feature will be integrated into Franklin Templeton’s tokenization platform Benji. The company said it can potentially improve the crypto industry’s current model of calculating yield over a longer period.

“[…] Intraday Yield is designed to solve a century-old inefficiency in traditional finance: the delayed and rigid nature of yield calculation and distribution,” Roger Bayston, head of Digital Assets at Franklin Templeton, told Cointelegraph.

Yield is calculated at varying intervals depending on the asset class. While it’s typically expressed in annual terms, payouts can be made in scheduled increments. In some cases, higher yields may be tied to holding the asset for a longer period.

“In most legacy systems, yield is only calculated at the end of the trading day and distributed monthly, meaning that investors that transfer or trade during a single session often miss out on the proportional dividend or interest earnings tied to their actual holding time,” Bayston said.

The company is behind one of the largest tokenized treasury funds, with about $750 million in total assets under its Franklin OnChain U.S. Government Money Fund.

Related: Franklin Templeton launches Bitcoin, Ether index ETF

Demand for asset tokenization climbs in 2025

Tokenizable real-world, yield-bearing assets include debt instruments such as US Treasurys and corporate bonds, as well as equities issued by individual companies. According to RWA.xyz data, the market capitalization of tokenized assets reached $23.14 billion on June 9, up from $15.75 billion in early January, representing a 46.92% increase year to date.

Real-world asset tokenization market statistics. Source: RWA.xyz

Other asset managers backing tokenized funds include BlackRock and VanEck. Combined, those two companies manage over $2.94 billion in tokenized Treasurys as of June 9.

Magazine: TradFi is building Ethereum L2s to tokenize trillions in RWAs — Inside story



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Shaurya Malwa
Crypto Trends

Alpaca Finance, Leveraged Yield Giant on BNB Chain, Will Shut Down

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Shaurya is the Co-Leader of the CoinDesk tokens and data team in Asia with a focus on crypto derivatives, DeFi, market microstructure, and protocol analysis.

Shaurya holds over $1,000 in BTC, ETH, SOL, AVAX, SUSHI, CRV, NEAR, YFI, YFII, SHIB, DOGE, USDT, USDC, BNB, MANA, MLN, LINK, XMR, ALGO, VET, CAKE, AAVE, COMP, ROOK, TRX, SNX, RUNE, FTM, ZIL, KSM, ENJ, CKB, JOE, GHST, PERP, BTRFLY, OHM, BANANA, ROME, BURGER, SPIRIT, and ORCA.

He provides over $1,000 to liquidity pools on Compound, Curve, SushiSwap, PancakeSwap, BurgerSwap, Orca, AnySwap, SpiritSwap, Rook Protocol, Yearn Finance, Synthetix, Harvest, Redacted Cartel, OlympusDAO, Rome, Trader Joe, and SUN.



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Ian Allison
Crypto Trends

Global Dollar Stablecoin Eyes Hundreds of Partners Attracted by Yield, Sees ‘Big Names’ From TradFi

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It’s early days for the global dollar (USDG), a stablecoin that debuted in November, but a thousand firms could join the group that helps popularize the token in return for a share of the yield earned on reserve assets, according to crypto exchange Kraken, one of the founding partners.

USDG, whose other backers include trading platform Robinhood (HOOD), stablecoin issuer Paxos, crypto investor Galaxy Digital and crypto bank Anchorage Digital, recently welcomed 19 new joiners, many of them crypto native firms. Banks and large traditional finance firms are also lining up, Kraken’s consumer business lead Mark Greenberg said.

“There are 25-plus partners now, and I hope in another month, we’ll be announcing the next 25, and then the next 25. So from 25 to 50 to 1,000,” Greenberg said in an interview. “I’m very excited about some of the partners coming up in traditional finance and in crypto — big names on both sides. We’re talking to a lot of banks and I think a few will be coming online soon.”

The changing dollar stablecoin landscape has been dominated by two big players: Tether’s USDT, far and away the largest at a market cap of over $150 billion, and Circle’s USDC which commands a circulation of just over $60 billion. USDG has just $276 million, making it the 24th-largest stablecoin in a CoinGecko ranking.

Paxos, the New York-regulated stablecoin specialist underpinning USDG, originally offered a contender to USDC and USDT in the form of tie-up with exchange giant Binance, but the partnership was discontinued for regulatory reasons.

Greenberg pointed out USDG is a “true consortium,” and Paxos is a distribution partner, albeit with some particular administrative duties.

“We are building a decentralized community around the stablecoin, with yield that goes back to everybody,” Greenberg said. “Some of us are founding partners, and if we were a property company, Paxos would be the property management. They make sure that the licenses are in place and that the treasuries are handled properly and that the minting is done. But it’s on all of us to be equal partners in making the global dollar network a success.”

Driving the consortium’s growth is the offer of yield, which both incentivizes firms to join up, and also reimagines stablecoins as part of the wider financial system, Greenberg said. It’s also how USDG plans to challenge the dominance of Tether and Circle.

“I believe in decentralization over centralization. I believe in giving the value back to users, and USDG is doing that in a way that you can’t with Circle or Tether today,” said Greenberg. “Tether and Circle make a lot of money. In banking you give your deposits and they do things with it, but you get almost nothing back. But stablecoins shouldn’t be like that.”

Kraken moves a lot of money around the world and naturally the firm has been using USDG, eating its own dog food, in business innovation parlance.

“We use global dollars and the USDG all over the world,” Greenberg said. “You send a wire and it can take four or five days and get stuck in some random bank along the way. That’s already changing really fast. And you see players like Visa and MasterCard and others come to the table and stablecoins start to play that role in a much bigger way.”

Kraken’s clients are also taking advantage of earning up to 4.1% on U.S. dollars in every country in the world by putting their money in USDG, Greenberg added.

“If you’re in the U.S., maybe that’s not that exciting, because there are other ways to do that. But if you’re in Argentina, or if you’re in Canada, where there are no U.S. dollar accounts and earning 4.1% is unheard of, it’s a very cool opportunity to make that happen.”



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ASIC Seeks High Court Ruling on Crypto Yield Products After Block Earner Win

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In brief

  • Australia’s corporate regulator is seeking High Court approval to appeal a ruling that favoured crypto firm Block Earner over the classification of digital asset yield products.
  • ASIC is asking the court to clarify whether interest-earning and asset conversion crypto products fall under the Corporations Act as financial products.
  • The appeal follows a Federal Court decision that found Block Earner’s fixed-yield product did not constitute a financial product under current law.

Australia’s corporate regulator is seeking special leave from the High Court to appeal a ruling in favour of crypto firm Block Earner, intensifying a legal dispute over the status of digital asset yield products.

The Australian Securities and Investments Commission, or ASIC, is asking the High Court to clarify how interest-earning and asset conversion products should be treated under the Corporations Act. 

“The definition of financial product was drafted in a broad and technology-neutral way, and ASIC believes it is in the public interest to clarify this,” the agency said in a statement. “This clarification is important as it applies to all financial products and services, whether they involve crypto-assets or not.”

Special leave is required to appeal to the High Court of Australia. The court grants it only in cases involving significant legal questions or matters of public interest. Appeals are not heard automatically, and ASIC, in this case, must first obtain the court’s permission.

In April, a decision by the Full Federal Court overturned earlier findings against Block Earner, which ASIC argues had offered a fixed-yield crypto product called “Earner” without a financial services licence. 

The Full Court found the offering did not constitute a financial product under existing law, a blow to ASIC’s efforts to bring crypto services under the same framework as traditional finance.

The case was brought to the court following an earlier Federal Court ruling in February 2024, which found that Block Earner had engaged in unlicensed conduct when offering the Earner product between March and November 2022.

However, the Court dismissed ASIC’s claims against Block Earner’s variable-yield product, “Access,” and in June relieved the company of penalties. 

That decision was then appealed by ASIC and counter-appealed by Block Earner, culminating in the Full Federal Court’s ruling in April 2025.

Block Earner, the trading name of Web3 Ventures Pty Ltd, has since shuttered the product and has stated it has no plans to relaunch it. 

The company argues that its offering simply allowed customers to loan crypto under fixed terms and receive interest, without pooling funds or exposing users to business risk.

“From the outset, we sought to ensure that our modern product suite could fit into a less-modern regulatory environment,” Charlie Karaboga, CEO and co-founder of Block Earner, said in April.

The High Court has not yet set a date to consider ASIC’s application.

Decrypt has approached Block Earner for comment.

Edited by Sebastian Sinclair

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