Cryptocurrencies, stablecoins in particular, are becoming more widely accepted by regulators across the globe. GYEN stablecoin owned by Japanese giant, GMO Internet, has recently gained approval from New York regulators.
The latest stablecoin was approved by a New York regulator: The New York Department of Financial Services (NYDFS). The approval was made public in a press release by GMO on Tuesday. The GYEN makes history, as it is the first stablecoin to be backed by the Japanese Yen. It is also the first stable coin approved by the NYDFS that is not backed by the dollar.
A Second Stablecoin Backed by the Dollar
The GYEN is not the only stablecoin that will be released by the internet company. ZUSD is another stable coin to be released by the company. However, unlike GYEN, this one is backed by the American Dollar. Both coins are to be issued by GMO-Z.com Trust Company. The tryst company is a subsidiary of GMO Internet and has been given the right to issue by the NYDFS.
Both stablecoins should be released by January 2021, on the Ethereum network. Although they will be put up on different exchanges to boost liquidity, sadly, they will not be available to clients in Japan. GMO is part of the 27 companies that have been given a go-ahead by the New York regulator to operate crypto-related services.
“We seek to dramatically reduce execution times and expand the digital options for retail and institutional clients in trading, settlements, and payments,” said Kurt Bierbower, SVP of business development at GMO-Z.com Trust Company. Biebower said the company is also looking at increasing lending and remitting options for clients.
The company admitted that it was not easy to secure a Bitlicense from NYDFS. GMO said it had to undergo several processes, such as cybersecurity and anti-money laundering checks. GMO has made crypto moves in the past, such as owning a Japanese crypto exchange. This shows that GMO is not a newcomer to the crypto space.