The recent news has tightened the market’s nerves—today at 18:50 Eastern Time, Japan will initiate a large-scale sell-off of foreign bonds. Last time, Japan sold off $356 billion, which already stirred global markets. This time? Under the backdrop of rate hikes, the scale could surge to $750 billion or even higher.

The key point is that U.S. Treasuries will be the first to face sell-offs.

Imagine, on a string already tight with global liquidity, suddenly being struck by a massive arrow. The expectation of liquidity tightening combined with massive sell orders will inevitably cause significant market volatility. The question is: when this shock truly hits, where will global capital flow to?

At this moment, something that has gradually entered mainstream awareness over the years becomes particularly valuable—decentralized stablecoins. When sovereign-level sell-offs threaten to destabilize government bonds and money markets, decentralized stablecoins offer an alternative approach: a stable store of value that is not tied to the credit of a single country and won’t collapse due to large-scale sell-offs by any institution.

Why is Japan’s sell-off so deadly?

Japan is one of the world’s largest creditor nations, holding huge amounts of foreign bonds, especially U.S. Treasuries. These holdings are like ballast maintaining global financial stability. If this ballast is moved on a large scale, it triggers a chain reaction in the entire financial system. How will global risk-free interest rates move? How will dollar liquidity respond? All of these are uncertain.

In this context, stablecoins that do not rely on any single central bank or authority become an alternative risk hedging tool.