Cryptocurrency, Economy

First-ever Japanese Yen Stablecoin approved in New York

The New York State Department of Financial Services, the Bitlicense regulator, has approved GMO to issue U.S. dollar and Japanese yen-pegged stablecoins. The latter “will be the first of its kind available to the public.” Currently, the regulator has given out 27 charters and licenses for firms engaged in crypto activities.

The New York State Department of Financial Services (DFS) has authorized a charter under New York Banking Law to Trust Company Inc., a Japanese giant GMO Internet subsidiary. This allows the business to function as a limited liability trust company, the regulator published Tuesday, elaborating:

With DFS approval, GMO is authorized to issue, administer, and redeem Japanese yen and U.S. dollar-pegged stablecoins in New York. The Japanese yen stablecoin will be the first of its kind open to the public.

Including the charter granted to GMO, to date, DFS has approved 27 charters and licenses for companies engaged in virtual currency business activity,” the announcement continues.

GMO-z Trust Company president Ken Nakamura commented: 

“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.”

The DFS started licensing firms involved in cryptocurrency exchanges in 2015 and has since revised its crypto regulatory approach. The regulator described, “This includes streamlining the process for companies to adopt new coins through a self-certification framework and a coins Greenlist, making use of the department’s conditional licensing authority, and providing new clarity about DFS processes and expectations to applicants and licensed entities.”

Do you think GMO’s regulated yen stablecoin will be popular in the U.S.? Let us know in the comments section below.

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