NYDFS Approves Internet Giant, GMO, to Offer The First Japanese Yen (JPY) Pegged Stablecoin
Tokyo-based internet conglomerate, GMO Internet has been cleared by New York Financial Services (NYDFS) to provide two stablecoins; a Yen-pegged stablecoin (GYEN) and a dollar-pegged stablecoin (ZUSD).
The NYFDS allowed GMO Internet to set up a limited purpose trust company, GMO-Z.com which will issue the two stablecoins. In order for the company to gain approval, it had to meet various strict rules from the NYFDS and also adhere to the federal anti-money laundering (AML) rules and economic sanctions.
Although there are various regulated stablecoins, there aren't any pegged to the Japanese yen. In this case, GMO Internet becomes the pioneer company to issue the world’s first JPY-pegged coin.
According to the company, both ZUSD and GYEN stablecoins can be bought and redeemed using GMO-Z.com. The two stablecoins will be powered by the Ethereum network and will be available from Jan. 2021. The firm also clarified that the two stablecoins will be available to both institutional and individual clients and are ideal for trading, payments, hedging, settlements, and arbitrage. GMO-Z.com Trust Company’s SVP of business development, Kurt Bierbower, explained further,
“We seek to dramatically reduce execution times and expand the digital options for retail and institutional clients in trading, settlements, payments, lending and remittances.”
GMO Trust also stated that it had entered into strategic partnerships with various global virtual asset exchanges to guarantee the liquidity of the digital currencies. Bierbower also clarified that the firm started to develop GYEN in 2018. However, the two stablecoins will not be offered in Japan.
The licensing means that GMO is one of the 27 firms that are regulated to engage in digital currency activities in New York.
GMO has been in the crypto space for a couple of years. The firm owns a licensed crypto exchange operating in Japan and also a Bitcoin mining outfit. The company also states that it runs the globe’s biggest online forex trading outfit apart from their main internet services business. The firm also has an Internet bank that is regulated by the Japanese Financial Services Agency (FSA).