Japanese Internet Conglomerate to Launch First Yen-Pegged Stablecoin
- The operator of the FX trading platform will be issuing JPY and USD-pegged stablecoins.
- GYEN and ZUSD are set to launch in January 2021, but will not be available to Japanese residents.
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GMO Internet Group, the operator of the FX trading platform, has won the approval from the New York Department of Financial Services to issue a regulated JPY-pegged stablecoin.
According to the company’s press release published on 29 December, GMO Internet will be establishing a limited purpose trust company called GMO-Z.com to issue the stablecoin. The Trust’s stablecoin, pegged to the Japanese yen (GYEN), will launch alongside a USD-pegged stablecoin (ZUSD).
The two stablecoins will launch in the U.S. and globally in January 2021. However, GYEN and ZUSD will be distributed outside of Japan and will not be sold to Japanese residents.
To win approval from the New York Department of Financial Services, the company had to meet stringent cybersecurity program requirements. GMO said that it now meets the federal standards for anti-money laundering and economic sanctions in the U.S.
The stablecoins will be issued on the Ethereum network and can always be redeemed 1:1. Certified public accountants will publish monthly attestation reports, verifying that the company owns enough fiat assets to back the issued stablecoins.
Launching the stablecoins will allow the company to expand its digital offering for retail and institutional clients. Kurt Bierbower, a senior vice president at GMO-Z.com, said the company wants to dramatically reduce execution times for trading, settlements, payments, lending, and remittances.
- PayPal USD (PYUSD) will be issued by Paxos and the Ethereum blockchain, and is backed by U.S. dollar deposits, short-term Treasuries, and similar cash equivalents.
- The company said the stablecoin can be redeemed for U.S. dollars at all times, and exchanged for any other crypto supported by the platform, including BTC, ETH, BCH, and LTC.
PayPal logo and sign in front of PayPal Holdings headquarters building in North San Jose Innovation District in Silicon Valley, San Jose, California, USA, 17 March, 2019. Michael Vi/Shutterstock
- The Japanese exchange has adopted new AML measures in order to comply with the Japanese governments implementation of FATF’s Travel Rule.
- Transaction restrictions will be applied to 21 countries that follow the Travel Rule, though transfers to countries not on the list will still be supported.
- There is still no official date for when Binance will re-enter the Japanese market, but Sakura Exchange BitCoin (SEBC) will close doors on 31 May, and reopen as Binance Japan sometime after June.
- Customers in Japan who wished to continue using the exchange under the Binance name will have to undergo new identity verification and KYC checks.