Japanese Internet group GMO announces new Yen-backed stablecoin

Mattie Hesen

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GMO, a large Japanese internet group announced yesterday their plans to launch a new Yen-backed stable coin. The new coin will be launched in 2019 and will be known as the GMO Japanese Yen (GJY).

The Japanese internet giant has already invested in crypto exchange businesses and mining hardware. According to the announcement, the company is already working on the new digital currency. It seems the GMO Japanese Yen will be launched via Z.com.

GMO is not the first company that plans to launch a Yen-backed stablecoin as there are others with similar agendas. GMO says their final goal is to target international payments.

Right now there are approximately 57 other stable coins worldwide, and 23 of them are already circulating. Nevertheless, GMO’s statement mentioned GJY will be issued only for the Asian region.

GMO’s founder and president Masatoshi Kumagai says the company already has trusted licenses and banks in Japan which is why the GJY will be exclusive to Asia. The Japanese internet giant has a bank in Japan where it holds its fiat assets so the GMO Japanese Yen is fully backed by the Yen and safe against concerns like the ones affecting other stablecoins such as Tether.

Tether’s community support has been weakened by rumors that not all of its coins are USD-backed. GMO is focused on making the necessary preparation to prevent such rumors and they stated that GJY will probably become an ideal currency combining high remittance speed, low fees, and high credit-worthiness.

GMO’s interest in the cryptoverse isn’t new as the company launched a blockchain-powered online back in July. They also own two other crypto-related businesses, an exchange and a mining business both launched in 2017.

Besides the launch plans for the GJY stablecoin, they are also exploring solutions for using cryptocurrencies as settlement currencies assuming it would be possible considering volatility is a factor.

Even more, GMO considers stablecoins could fuel economic stability to countless developing countries although developed countries could benefit as well.