Japanese Firm Developing Stablecoin Tied to Yen

Oct 09, 2018 at 20:50

GMO Internet Co. Ltd., a dominant internet company in Japan, announced its plans to develop a stablecoin with a value that will be pegged to the Japanese Yen.

The company expressed that it wants to begin the issuance of the GMO Japanese Yen (GJY) tokens by next year to also prepare for its venture into blockchain remittance and settlement business.

Likewise, GJY will be issued to Asian markets through Z.com, a crypto exchange subsidiary launched by GMO as part of its wider efforts to move into the cryptocurrency business.

The stablecoin is also expected to help the company in settling transactions as it also operates mining farms and a web bank in partnership with Aozora Bank Group that will integrate blockchain technology for cross-border settlements.

GMO is the latest addition to tech firms that are joining the stablecoin bandwagon.

In the United States, Gemini, Paxos and Circle will issue their own stable coins, backed by US Dollar. PwC also noted recently that it is providing its services to lending platform, Cred, to also create a US Dollar pegged coin.

Other entities such as a $1 billion blockchain fund from China also revealed plans to have its own coin that will follow the value of the Japanese Yen that is expected to be released by year-end or by early 2019.