Tokyo-based tech conglomerate GMO Internet Group has just been authorized by the New York State Department of Financial Services (DFS) to issue stablecoins pegged to the U.S. dollar and Japanese yen.
Joining 27 companies that have been granted BitLicenses by the DFS, GMO can now launch its USD-pegged (ZUSD) and JPY-pegged (GYEN) stablecoins, after fulfilling stringent requirements and meeting federal standards for anti-money laundering.
The company says the stablecoins, which can be bought directly from the GMO Trust, are 100% backed by fiat and are redeemable at all times. GMO also says it has developed strategic partnerships with cryptocurrency exchange platforms that have a global reach to launch the assets.
GMO Internet Group operates one of the world’s largest forex trading platforms and an interbank regulated by the Japanese Financial Services Agency.
Having launched a regulated digital asset exchange and a large bitcoin mining operation in 2017, GMO began preparing for the launch of the GYEN stablecoin in 2018.
GMO Trust vice president of business development Kurt Bierbower says the company will soon expand the options for digital assets available to retail and institutional within a regulated environment.
“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 20-year history in this space to meet the highest standards of reliability and security as a regulated entity.”
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxFeatured Image: Shutterstock/diuno