Japanese Internet Titan GMO to Issue Yen-Pegged Stablecoin

  • GJY to be issued in the fiscal year 2019 through the cryptocurrency exchange Z.com
  • The project will help to integrate blockchain technology for cross-border payments.
  • GMO is targeting the field of international remittances

The Japanese Internet group GMO will issue a Yen-backed Stablecoin in 2019. This announcement was made via a press release on Tuesday, saying the company is beginning a full-scale preparation for the Stablecoin, which has been named the GMO Japanese Yen (GJY). The company explained:

“GMO Japanese Yen (ticker symbol: GJY)’ [will be launched] through the unified brand (global brand) ‘Z.com’ in the overseas strategy of the GMO Internet Group. [It will be a] ‘yen-pegged currency’ linked with the Japanese yen […] we plan to issue [the Stablecoin] for the Asian region around the fiscal year 2019”

The company said they will issue GJY to Asian markets in the fiscal year 2019 through the cryptocurrency exchange Z.com, which is a subsidiary of the company that’s been set apart to expedite GMO’s plans to move into cryptocurrency business.

GMO’s third crypto project

The internet giant stated further that by adding GJY into its crypto business the company will settle transactions as it also operates a cryptocurrency mining firm and they recently launched a new collaboration with the Aozora Bank Group they will eventually help them integrate blockchain technology for cross-border payments.

GMO joins the list of companies that have issued Stablecoins in the recent past. There are already 57 Stablecoins in existence out of which 23 are already in circulation. IBM stated in July 2018 it was partnering with Stellar Protocol to launch a U.S. dollar pegged cryptocurrencies while last month.

The Gemini cryptocurrency exchange, a blockchain startup Paxos and the crypto payment company Circle announced unveiling their own U.S. dollar backed Stablecoins which are all now live and trading.

In China, a People’s Bank of China publication has urged the government to consider researching and backing Yuan-pegged Stablecoins as PwC partnered with Cred to deliver transparency to their USD-backed Stablecoin.

Targeting remittances

In Tuesday’s communication GMO said it has researched and investigated the possibility of the digital currency becoming a settlement currency in view of the existing volatility and confirmed their main motivation was the field of international remittances. GMO founder and President Masatoshi Kumagai said:

“We have banks and trust licenses in Japan, so we will issue (GJY) in Asia, but we can store assets in Japan as well, […] if that happens, everyone will not be worried like with Tether; it can be said that GMO has a bank there and keeps fiat there.”