New York regulator licenses GMO Internet to issue the first JPY-pegged stablecoin
December 30, 2020, 6:15AM EST
1 min read
The New York Department of Financial Services (NYDFS) has given Japanese tech giant GMO Internet the green light to issue two stablecoins — a dollar-pegged coin (ZUSD) and a yen-pegged coin (GYEN).
GYEN is the first non-USD stablecoin approved by the NYDFS. Both GYEN and ZUSD will be issued by GMO-Z.com Trust Company, a limited liability trust company that has been granted a charter by the NYDFS.
GMO said to win approval for the trust, it had to meet stringent requirements for cybersecurity programs, as well as federal standards for anti-money laundering and economic sanctions. The stablecoins are expected to launch next month and will be powered by Ethereum.
"We seek to dramatically reduce execution times and expand the digital options for retail and institutional clients in trading, settlements, payments, lending and remittances," said Kurt Bierbower, SVP of business development at GMO-Z.com Trust Company.
The stablecoins are also expected to get listed on crypto exchanges to enhance accessibility and liquidity. They will, however, not be available in Japan.
GMO is not new to the crypto space. It already operates a regulated crypto exchange in Japan and a bitcoin mining operation. The company also claims to run the world's largest online forex trading platform, besides its core internet services business.