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GMO Internet licensed by New York regulator DFS to engage in virtual currency marketplace

By Pavithra R

December 30, 2020

  • Gmo
  • Japan
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GMO Internet licensed by New York regulator DFS to engage in virtual currency marketplace

GMO Internet, Tokyo based Internet conglomerate has announced receiving approval from the New York Department of Financial Services to establish a limited purpose trust company, GMO-Z.com Trust Company and issue regulated JPY-pegged stablecoin, (Ticker: GYEN).

The company had to meet stringent requirements for its cybersecurity programs, as well as meet federal standards for anti-money laundering and economic sanctions so as to win the approval for the trust. Through the approval, the company can now launch both JPY-pegged stablecoin (Ticker: GYEN) and USD-pegged stablecoin (Ticker: ZUSD). Both of which can be purchased and redeemed directly from GMO Trust. GMO Trust will issue and redeem GYEN and ZUSD directly to minimize fees while improving security and transparency.

The stablecoins will:

  • Be 100% fiat-backed and always redeemable 1:1.
  • Be available on global exchanges among the most liquid digital assets.
  • Be powered by Ethereum’s blockchain-based technology.

“We’re breaking ground with our move to issue the first regulated JPY-pegged stablecoin, which many see as a safe haven asset. But we are also pioneers and innovators in this space who envision building new applications of blockchain technology that transform our relationship with traditional financial services,” said Ken Nakamura, President and CEO of GMO-Z.com Trust Company. Additionally, GMO Trust has partnered strategically with digital asset exchanges that operate globally to enhance the accessibility and liquidity of the tokens.

According to the firm, even though there are other regulated stablecoins, none are pegged to JPY. Therefore, GMO Trust will take the lead in launching the first regulated JPY-pegged stablecoin along with the U.S. dollar-pegged stablecoin in the U.S., and to be available globally.

“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,” said Kurt Bierbower, SVP of Business Development at GMO-Z.com Trust Company.

Established since 1991, GMO Internet Group has been a global market leader in the Internet infrastructure, Internet finance and digital asset space. The firm launched a digital currency exchange regulated by the FSA and a large Bitcoin mining operation in 2017 and began its research and development for the launch of GYEN since 2018.

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