Gluefi x Quest White Paper, August 2025
From Idle Yen to Global Yields
Survey Insights on Treasury Strategy in an Inflationary Japan
In partnership with:
Eroding Value: The Hidden Cost to Holding Idle Capital
This white paper examines the growing risks faced by Japanese corporations as inflation and yen depreciation erode the value of idle cash.
Drawing on new national survey data, it explores how finance leaders are responding and highlights the emergence of compliant digital tools—including regulated stablecoins and tokenized money market funds (MMFs)—as part of a shifting capital management
Executive Summary
Across Japan, companies are sitting on more than ¥350 trillion in corporate cash [1]. Much of it is parked in domestic bank deposits earning less than 0.2% interest [2]. At the same time, inflation is rising and the yen is weakening [3]. Meanwhile, U.S. Treasury Bills—widely considered the safest financial asset in the world—are yielding over 4% annually [4].
Japanese corporations are facing a critical moment in treasury management. With more than ¥350 trillion held in low-yield domestic deposits and inflation exceeding 3.5%, the real value of idle capital is rapidly eroding. At the same time, the yen has depreciated significantly against the U.S. dollar, compounding foreign exchange risk. Meanwhile, global financial markets are evolving quickly, with tokenized money market funds and regulated stablecoins now offering new, compliant avenues for corporate yield generation.
More
than ¥350 trillion is sitting idle in lowyield deposits—losing value every day.
This white paper shares findings from a June 2025 nationwide survey conducted by Quest Research, which gathered insights from over 1,500 finance leaders across Japanese SMEs and corporations. The data reveals widespread concern over inflation and FX volatility, low preparedness to manage these risks, and a clear appetite for improved financial tools. Respondents highlighted "low yield," "high fees," and "complexity" as key pain points, and many cited tax and FX management concerns as major barriers to accessing global investment products.
In addition to survey results, the paper outlines how Japan's regulatory reforms and growing institutional partnerships are making new solutions possible. It introduces the broader context of emerging digital financial instruments, including tokenized MMFs and stablecoins approved under Japanese law. As a case study, it also briefly profiles Gluefi, an infrastructure provider working with regulated domestic partners to deliver compliant access to global yields through its Digital Kiribako platform.
This report aims to bring awareness to the evolving capital management landscape and serve as a resource for financial institutions evaluating strategic treasury alternatives in a time of macroeconomic uncertainty.
Unlocking Japan’s Idle Cash:
Treasury Insights from 1,500+ Finance Leaders
A first-of-its-kind national survey reveals how inflation, yen volatility, and structural barriers are shaping Japanese corporate treasury strategies — and where opportunities lie.
of respondents are concerned about inflation eroding their idle cash — yet most earn under 2% returns.
In June 2025, Gluefi partnered with Quest Research to conduct a nationwide survey of 1,583 finance decision-makers at Japanese SMEs and large corporations. This study uncovers a clear pattern: while Japan’s corporates are capital-rich, many remain yield-poor, constrained by FX and tax complexities, operational hurdles, and limited access to global yield products. The findings point to both the constraints holding firms back and the readiness for solutions that bridge them to higher, safer returns.
It is evident that many Japanese citizens are not adequately prepared for the current inflation and exchange rate fluctuations, and that there is demand for USD-denominated assets due to dissatisfaction with the current returns and fees associated with their cash management.
85% of respondents expressed concern about inflation, with 16% “very or extremely concerned.”
Corporate Concern: Inflation is
Eating into Cash Reserves
85% of Japanese finance leaders are concerned about inflation eroding idle cash.
Well prepared
Moderately prepared
Level of preparation for inflation in the coming year
63% said they are unprepared for inflation over the coming year.
Not prepared at all
Slightly prepared
Not prepared but concerned
Concerns in FX Volatility Over the Coming Year
Level of preparation towards the possibility of Yen depreciation on the company’s idle Yen over the next year
said they are feeling concerned about foreign exchange volatility over the coming year, with 12% saying they are feeling “very or extremely concerned” 75%
said they are unprepared for foreign exchange volatility over the coming year 63%
While financial risks such as inflation and currency volatility are widely acknowledged, the lack of accessible and integrated solutions likely contributes to users’ hesitation or delayed response.
Treasury Challenges with Low-Yield Returns
Lack of options
FX risk
Lack of online capabilities
High minimum deposits
Locked capital requirements
Customer service
Online user experience
Nearly
half (47%) of yen holders keep their excess cash in low-yield accounts offering less than 0.5% returns.
Even among firms already holding U.S. dollars, 80% earn below 3%, with most receiving just 1–2%.
FX and Tax Concerns in Global Investing
Comparison of average fund returns between USD holders and non-USD holders
Barriers to using global financial products such as U.S. Treasuries
Tax treatment is unclear and causes worry
Lack of knowledge or experience in currency management
Currency exchange and balance checks are manual and time-consuming
Hard to see currency movements and your balance in real time
Minimum investment is high and lacks flexibility
It is hard to access the product in the first place
Starting overseas investment requires complex procedures and internal approvals
Need to deal with multiple vendors to get all necessary services
Delay between trade execution and actual settlement (more than T+2)
Time zone differences sometimes miss the trade cut-off
API connection is limited (cannot connect well with other systems/tools)
Bank Integration Emerges as a Leading Feature Request
Expected features of Gluefi (see next page)
Guarantee on deposits
Partnership with our existing bank
Higher transparency in operations
34% of respondents selected
“integration with their existing bank” as a key feature request for Gluefi.
These findings point to a clear and significant demand for more effective yield solutions demand that is well documented but still underserved.
Finance leaders are not resistant to change; they are simply waiting for options that meet Japan s legal standards and institutional expectations. Traditional domestic instruments, such as JGB-based money market funds, remain low risk but offer yields below 0.32% [5]—a return profile that many firms now consider insufficient given the current inflationary and FX environment.
A detailed report of this survey results can be found at: gluefi.com/WHITEPAPER
Case Study:Gluefi and Its Digital Kiribako Solution
While USD-denominated MMFs are widely used by global institutions, they remain difficult to access for most Japanese businesses. These funds typically require offshore custody arrangements, involve complex tax and compliance burdens, and operate outside the scope of most local treasury workflows. As a result, even large corporates often leave significant capital in low-yield domestic accounts. The lack of seamless, compliant access has historically made traditional money market funds (MMFs) impractical for most Japanese SMEs and mid-sized firms.
Gluefi is a financial infrastructure company enabling Japanese corporates to access global yield opportunities through secure, regulated digital channels. Instead of requiring offshore accounts or blockchain-heavy workflows, Gluefi partners exclusively with licensed domestic institutions to convert yen and U.S. dollars into regulated stablecoins for allocation into tokenized U.S. Treasury–backed money market funds. By embedding tokenized yield products within regulator-approved banking platforms, Gluefi delivers the efficiency, transparency, and 24/7 accessibility of tokenization—while ensuring corporate clients remain fully compliant with Japan’s legal and regulatory standards.
As global financial markets evolve toward tokenized instruments, Japan finds itself at a critical inflection point. Regulatory clarity, technological readiness, and macroeconomic pressures are converging to create new possibilities for corporate treasury. Gluefi’s "Digital Kiribako™" is designed to meet this moment—bridging Japan’s rigorous compliance standards with the infrastructure of modern digital capital markets.
The Digital Kiribako platform and APIs enable Japanese corporates to securely access tokenized cash instruments—such as MMFs and stablecoins—through trusted domestic intermediaries. This is now possible due to JFSA’s approval of stablecoins like USDC [6], which can be legally handled by licensed entities in Japan.
Built for Compliance, Designed for Treasury
Gluefi’s infrastructure is built with the operational needs of Japanese corporates in mind:
KYC/AML engine aligned with Japanese regulatory standards Automated tax reporting and regulatory support
Seamless integration with existing Treasury Management Systems (TMS) Real time redemption and yield tracking No need for crypto wallets or private key management Gluefi does not issue tokens or hold user funds
Regulatory Readiness and Market Timing
Even a 10% allocation could open a ¥10+ trillion market for tokenized yields.
Japan is at the crossroads of regulatory readiness, institutional innovation, and macroeconomic urgency. Stablecoin approvals, tokenized MMFs, and yen depreciation have created a narrow but critical window for action. Japanese corporates hold ¥350T in excess capital, with ~¥115T from SMEs open to tokenized yields—meaning even a conservative 10% allocation could unlock a ¥10T+ opportunity.
Gluefi is positioned to capture this market by partnering with licensed domestic institutions to deliver secure, compliant access to tokenized yield products—without changing existing systems or risk posture. With Japan’s regulatory clarity, technical readiness, and institutional conservatism, we are ready to lead the next phase of digital financial infrastructure—without compromising trust.
Join Gluefi’s Beta Launch Program
We are launching the Gluefi Beta Program for select Japanese business leaders, fintech partners, and regional banks to gain first-mover access to regulated tokenized instruments that deliver higher yields while meeting Japan’s strict compliance standards.
Participants will help shape product features for the Japanese market and earn real cash and yield rewards by testing the Digital Kiribako platform—at no cost. If your company is seeking to optimize idle yen and/or USD, explore innovative cash management solutions, or prepare for the next wave of financial infrastructure, we invite you to join.
Turn idle yen into opportunity—safely and compliantly.
We are committed to unlocking the potential of idle capital through regulated stablecoin and tokenized money market solutions, with safety, compliance, and discretion as our top priorities.
Secure your Beta spot today and help shape Japan’s future of compliant digital yield access.
Secure your spot today: GLUefi.com Questions? Email: info@gluefi.com
Survey Overview
Target Respondents
Gender and Age: Men and women aged 25 to 69
Occupation: "Executives or company directors"
Position: Must hold one of the following titles: "Owner," "President/CEO," "Director," or "CFO"
Surplus Funds Held by Company: 1 million yen or more
Survey Method
Online research (Survey results are presented without any weighting adjustments)
Endnotes
Bank of Japan Flow of Funds Report, March 2 25. Link
Mizuho Research nstitute, Q2 2 25.
Survey Period
June 6–12, 2025
Valid Responses
Screening Samples: 9,484 samples
Main Survey Samples: 1,583 samples
Survey Conducted by
Quest Research Inc. | quest-research.co.jp
Ministry of nternal Affairs and Communications (M C), Japan;
The JPY has depreciated over 25% against the US since 2 2 . Link
U.S. epartment of the Treasury. As of July 2 25, the 3-month and 6-month U.S. Treasury Bills
Link
Nomura Asset Management, 2 25. Japan domiciled MMFs invested in short term government securities yield .32% annually as of mid-2 25. Link
Financial Services Agency (JFSA), Stablecoin Guidelines, effective June 2 23 (updated 2 25). Li k
Additional Reading
TBAC Presentation April 3 , 2 25 igital Money [Link]
Franklin Templeton Article June , 2 25 Tokenized Money Market Funds [Link]
Gluefi is a financial infrastructure provider dedicated to regulated, tokenized finance in Japan. We do not issue tokens or hold client assets. Instead, our platform works exclusively with licensed domestic institutions and is built to meet the operational, legal, and compliance standards expected by Japan’s leading financial institutions and corporate treasury teams.
With deep expertise across finance, compliance, and digital markets, Gluefi enables a new class of secure, compliant yield access—without requiring changes to existing systems or risk posture.
Learn more at: gluefi.com
About Gluefi About Quest Research
Quest Research is a Tokyo-based market insights firm with deep experience conducting surveys among Japanese corporate decisionmakers, with a focus on financial and institutional behavior.
Learn more at: quest-research.co.jp