The GMO Trust secures BitLicense to float a Japanese Yen stablecoin in the public. This is for the first time that a company has received approval to bring a JPY-pegged stablecoin.
On Tuesday, December 29, the New York Department of Financial Services has given approval to Tokyo-based GMO Internet to issue the first stablecoin pegged to Japanese Yen (JPY). The JPY-pegged stablecoin will also be the first-of-its-kind available to the public.
On the other hand, there have been many players issuing the USD-pegged stablecoins over the last few years. For the new project, Japan’s internet conglomerate will float a GMO-Z.com Trust Company (GMO Trust) to issue the GYEN stablecoin. Besides, it will also issue a USD-pegged stablecoin dubbed ZUSD.
It is not that GMO Internet is venturing into unchartered territories for the first time. The Japanese internet giant manages the world’s largest online FX trading platform. Speaking on the development, NYDFS Superintendent Lina A. Lacewell said:
“New York continues to stay on the forefront of financial innovation as stablecoins take on growing significance and point to new directions in the future of money. Approval of this charter is a testament to DFS’ commitment to encourage innovation, while providing rigorous regulatory oversight to uphold the integrity of the markets and to protect consumers.”
The Development of GYEN Stablecoin by GMO
In the press release, the GMO Trust said that it has made a few strategic partnerships with global digital exchanges in order to ensure the liquidity of virtual currencies. Reportedly, GMO Internet already started developing GYEN stablecoin in 2018.
The GMO Trust 27 other companies that have received virtual currency licenses from NYDFS, also called as BitLicenses. Ken Nakamura, President and CEO of GMO-Z.com Trust Company Inc said:
“We’re breaking ground with our move to issue the first regulated JPY-pegged stablecoin, which many see as a safe haven asset. But we are also pioneers and innovators in this space who envision building new applications of blockchain technology that transform our relationship with traditional financial services.”
Over the last few years, several companies from Asia have been receiving BitLicenses. Moreover, Japan remains at the forefront of the currency revolution. Previously, Japanese Bitcoin Exchange bitFlyer had acquired this license. Similarly, the Hong-Kong-based digital wallet Xapo has also acquired BitLicense.
The latest acquisition of BitLicense will allow GMO Trust to easily operate its stablecoin within the US. jurisdiction. Possibly, more companies might soon issue a JPY-pegged stablecoin.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.