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Japanese Internet Giant Announces Yen-Backed Stablecoin

GMO Internet Group, a publically listed Japanese Internet company, has recently announced plans to launch a yen-backed stablecoin early next year. The new stablecoin dubbed GMO Japanese Yen will trade under the ticker symbol GJY.

The press release also mentions that GMO Internet Group sees three areas of the digital currency space, which are “exchanges”, “mining”, and “settlement”. After launching a crypto exchange in May 2017, GMO Internet Group entered the mining space in December 2017.

In the press release, GMO Internet Group stated:

“GMO Internet Co., Ltd. (hereinafter, GMO Internet) will start full-scale preparations to issue stablecoins of stable virtual currency, with an eye to entry into “settlement” in the area of the virtual currency business.”

Stablecoins are digital currencies that have some mechanism or peg in place to maintain a stable value. In the report, GMO Internet Group acknowledged the three types of stablecoins in its press release: fully fiat collateralized, crypto collateralized, and uncollateralized.

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GMO Internet Group also mentioned that the stablecoin market is approximately $3 billion with Tether comprising a significant portion of the market. Tether does not have the greatest reputation in the crypto space due to some ambiguities surrounding solvency, although Bitfinex recently addressed some of this controversy by providing a look to some of its Bitcoin, Ethereum, and EOS holdings.

The vision for GMO Japanese Yen

The press release states:

“The “yen peg currency” collateralized by the Japanese yen is highly likely to be an ideal currency that combines high creditworthiness, low fee, and speed of remittance in remittances unique to virtual currency thinking about. By issuing the “yen peg currency”, GMO Internet will continue to support borderless transactions with creditworthiness.”

GMO Internet Group envisions the GMO Japanese Yen as a currency that displays the benefits of both fiat money and digital currency. The “yen peg currency” is reported to be issued toward the Asian region with the aim of 2019

Thus, the stablecoin space continues to become increasingly crowded, while many of these innovations have yet to see comments from regulators and adoption. Another day, another stablecoin.

Posted In: , Stablecoins

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