GMO Internet Inc., the Tokyo-based Internet conglomerate, has won approval from the New York Department of Financial Services to establish a limited purpose trust company, GMO-Z.com Trust Company, Inc. (“GMO Trust”) and issue the world’s first regulated JPY-pegged stablecoin (Ticker: GYEN).
To win approval for the trust, the company had to meet stringent requirements for its cybersecurity programs, as well as meet federal standards for anti-money laundering and economic sanctions. The approval allows the company to launch both JPY-pegged stablecoin (Ticker: GYEN) and USD-pegged stablecoin (Ticker: ZUSD). Both GYEN and ZUSD can be purchased and redeemed directly from GMO Trust. In addition, GMO Trust has partnered strategically with digital asset exchanges that operate globally to enhance the accessibility and liquidity of the tokens.
There are currently other regulated stablecoins, but none are pegged to JPY. Therefore, GMO Trust will take the lead in launching the first regulated JPY-pegged stablecoin along with the US dollar-pegged stablecoin in the U.S., and to be available globally, in January, 2021. These digital assets can be leveraged by institutional firms and retail users for trading, institutional hedging, arbitrage, settlements, and payments. For more information on GMO Trust, please visit https://stablecoin.z.com/
The stablecoins will:
- Be 100% fiat-backed and always redeemable 1:1.
- Be available on exchanges globally among the most liquid digital assets.
- Be powered by Ethereum‘s leading blockchain-based technology.
A monthly attestation report will be disclosed by certified public accountants to verify the availability of assets to support the value of the stablecoins. GMO Trust will issue and redeem GYEN and ZUSD directly to reduce fees while improving security and transparency.
GMO Internet Group has been a global market leader in the Internet infrastructure, Internet finance and digital asset space since its inception in 1991.
It operates the world’s largest online FX trading platform, claiming the top global spot in trading volume within the FX space for seven consecutive years. It also operates a Japanese Financial Services Agency (FSA) regulated Internet bank. In 2017, it launched a digital currency exchange regulated by the FSA and a large Bitcoin mining operation. In 2018, it began research and development for the launch of GYEN.