Reverse Carry Trade Impact — US Economy & XRP. Jake Claver, recorded October 2025.
More on this subject: jakeclaver.com.
What this recording covers
Claver outlines his domino theory regarding how an unwinding Japanese currency carry trade could impact sovereign debt markets and digital asset liquidity. He explains that rising energy costs in Japan could prompt the Bank of Japan to raise interest rates, forcing investors to close borrowing arrangements and sell foreign bond holdings. To prevent massive treasury sales from destabilizing domestic credit markets, Claver points to legislative frameworks like the Genius Act that incentivize regulated stablecoin issuance. Because stablecoins require backing by short-term government treasuries, domestic stablecoin demand could absorb debt instruments entering the secondary market. Furthermore, Claver describes how borrowers unwinding debt positions across international borders must execute extensive foreign currency conversions back into Japanese yen, creating a structural settlement requirement where intermediate bridge assets like XRP could facilitate cross-currency foreign exchange flows.
Where this fits
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