GMO Trust Selects Zero Hash For Yen-Backed Stablecoin Settlement
- Zero Hash’s settlement network will now support GMO Trust’s dollar and yen backed stablecoins, GYEN and ZUSD.
- The partnership aims to eliminate the typical bottlenecks for cross-border JPY transfers and settlements.
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The crypto subsidiary of Japanese giant GMO Internet Group, GMO-Z.com Trust Company (GMO Trust), has partnered with digital asset custodian Zero Hash to unveil its Japanese yen-pegged stablecoin, GMO Trust announced on 14 April.
According to the press release, GMO Trust’s GYEN and ZUSD — a dollar-backed stablecoin — will now be supported on Zero Hash’s settlement network, enabling users to use the stablecoins for both deposits and withdrawals, with instant settlement. The partnership aims to eliminate the typical bottlenecks for cross-border JPY transfers and settlements, which can take “days to weeks” with the current financial rails. GMO Trust’s SVP of Business Development, Kurt Bierbower, explained:
“Many of the institutional counterparties we speak with express frustration over transaction times when dealing with JPY. Zero Hash enables institutional trading firms, market makers and other counterparties on their network to experience incredible speed and efficiency for JPY funding, settlement, and leveraging their banking network and our stablecoins.”
Zero Hash offers a settlement network that enables the combination of multiple fiat currencies with supported digital asset products through Signature’s SigNet and Silvergate’s SEN networks. Through the partnership, GMO Trust will be able to bring the same speed, efficiency and availability for USD, enabled by Signet/SEN, to the Japanese yen.
GMO Internet Group first revealed its plans to release a JPY-pegged stablecoin back in December 2020 when it secured regulatory approval from the New York Department of Financial Services. At the time, the company said it had to meet stringent cybersecurity program requirements, as well as the federal standards for anti-money laundering and economic sanctions, before it received the regulatory approval.
- 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 Bank of Japan will collaborate with three Japanese megabanks on a CBDC with offline functionality starting early next year.
- The central bank plans to experiment and stress test the potential digital yen for two years, and make a final decision on whether to widely issue it by 2026.
- FTX CEO Sam Bankman-Fried said in an interview it is very likely FTX creates a stablecoin, though it prefers to partner with someone on the project.
- While not many details were revealed, Bankman-Fried noted we could hear something on this topic in the “not-too-distant future”.