Japan’s Internet Giant to Launch GMO Japanese Yen (GJY), a Yen-Pegged Stablecoin
GMO Internet to Launch A Yen-Pegged Stablecoin
GJY will be issued to Asian markets in the fiscal year of 2019 via Z.com, a cryptocurrency exchange subsidiary launched by GMO as part of its wider efforts to move into the cryptocurrency business.
The company confirmed that the main motive behind its decision was to target international remittance.
“We have banks and trust licenses in Japan, so we will issue (GJY) in Asia, but we can store assets in Japan as well,” GMO founder and president Masatoshi Kumagai told CT Japan, adding: “If that happens, everyone will not be worried like with Tether; it can be said that GMO has a bank there and keeps fiat there.”
Distinctly, Tether has faced rumors that it does not have sufficient fiat reserves to back its token issuances. In June, an unofficial audit noted that Tether’s token issuances are supported by the appropriate number of dollar holdings, with the company’s bank accounts not named.
The firm added that the introduction of GJY to its crypto business would help GMO settle transactions since it also operates mining farms and newly launched a new web bank in partnership with Aozora Bank Group that will ultimately integrate blockchain technology for settling cross-border settlements.
This marks a further potential player in the yen-pegged stablecoin market, with several other corporations signaling their intentions to launch assets of their own in recent months.
GMO is one of the rising stars in the stablecoin industry. However, other tech tycoons have also been known to take part in the development of different cryptocurrencies for their benefit. Last July, IBM stated that they were working on a USD pegged token to help in cross-country payments. Also, in September, Gemini (GUSD), a crypto exchange, Paxos (PAX), a blockchain startup and Circle (USDC), a crypto payments firm announced that they all will be working on a USD stablecoins.