GMO wins DFS approval to issue JPY and USD-pegged stablecoins in New York

GMO Internet Inc., the Tokyo-based Internet conglomerate, has won approval from the New York State Department of Financial Services (DFS) 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 program, 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. 

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.

Ken Nakamura, President and CEO of GMO-Z.com Trust Company, Inc, commented:“We're breaking ground with our move to issue the first regulated JPY-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.”