Akihabara News (Tokyo) — GMO Internet has won approval from the New York Department of Financial Services to establish a limited purpose trust company, which will issue the world’s first regulated Yen-pegged stablecoin.
GMO-Z.com Trust Company, called GMO Trust for short, will soon launch both a Yen-pegged stablecoin (GYEN) and US Dollar-pegged stablecoin (ZUSD), both of which can be purchased and redeemed directly from GMO Trust.
These stablecoins will be 100% fiat-backed and always redeemable at a 1:1 rate and ne powered by Ethereum blockchain technology.
Ken Nakamura, president and CEO of GMO Trust, commented, “We’re breaking ground with our move to issue the first regulated Yen-pegged stablecoin, which many see as a safe haven asset. But we are also pioneers and innovators in this space who envision building new applications of blockchain technology that transform our relationship with traditional financial services.”
Kurt Bierbower, the firm’s senior vice-president of business development, added: “We seek to dramatically reduce execution times and expand the digital options for retail and institutional clients in trading, settlements, payments, lending, and remittances. But our goal is also to leverage our twenty-year history in this space to meet the highest standards of reliability and security as a regulated entity.”
Tokyo-based GMO Internet Group operates an online FX trading platform. It also operates a 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.