The international corporate giant, GMO Internet Group, finally got cleared by the New York State Department of Financial Services to officially issue GYEN- an internationally regulated JPY Stablecoin recognized as the first of its kind in our time. Getting the go-ahead was not an easy task but the GMO Group proved ardent to get the clearance with the next-generation internet solutions that can comfortably manage anti-laundering activities as per federal standards, as well as providing sophisticated Cybersecurity protocols and meet unrelenting economic sanctions.
Under the agreement, the corporation will be issuing the ticker ZUSD/ USD Stablecoin and the ticker GYEN/ JPY Stablecoin. The two can be accrued and redeemed anytime from the main platform- the GMO Trust. To secure their position in the new strategic market, the GMO Internet Group has sought partnership with other digital technology pioneers, including international digital asset exchange groups, to augment liquidity of acquired assets and accessibility of tokens.
A Background of the GMO Trust
Instinctively, investors and third parties prospecting the newly launched stablecoin must be interested in the GMO Internet Trust corporate profile. The Corporation was officially launched in 1995 when Japan was at the inception of internet exploration. From this period, the story of GMO has been continually progressive, adapting to digital trends and expanding their market share regionally and globally.
Today, the corporation has operations in 62 locations and over 20 countries. The expansive operation also features an outline of 103 licensed companies and 10 publicly traded firms. Guided by their core values and the primary objective ‘Internet for Everyone’, GMO trust endeavors to be at the forefront of algorithmic mechanisms involving stablecoin.
Regulation of Stablecoin
The functional basis of stablecoin is to attain and sustain price stability of digital assets secured in a blockchain by pegging such digital assets to more stable assets, such as the American dollar. Other than the JPY Stablecoin, over 200 independent firms have been implementing stablecoin projects since 2017. With the increasing popularity, the stablecoin market is experiencing a sudden market capitalization surge. Those pegged to the American dollar, including USDC, otherwise known as USD Coin or the BUSD otherwise known as Binance USD, have recorded a 250% and 800% growth in market capitalization.
Stablecoins can either be collateral-backed or algorithmic. Algorithmic coins such as GYEN create their stablecoin supply by adapting to digital bonds liquidity, ultimately achieving price stability. The algorithmic backing heavily depends on policies governing monetary supply rather than relying on collateral to sustain their stablecoin value. The algorithmic backing has its advantages, including better automation processes and scalability. The JPY-Pegged Stablecoin from GMO Trust has become sensational as the first of its kind because it has broken traditional barriers that made the implementation of algorithmic stablecoin difficult.
How The Publicly Available JPY-Pegged Stablecoin will Influence The Global Market
The corporation at the forefront of launching the world’s first regulated stablecoin is none other than GMO Internet Group. Their JPY pegged stablecoin alongside the US dollar-pegged stablecoin was open for global public access at the beginning of 2021. Their application is extensive and can be exploited by retailers and institutions for payments, arbitrage, trading, settlements, and even institutional hedging.
The stablecoin is set to use the highly secure blockchain technology such as that used by Ethereum. It’s not a surprise that block-chain is the preferential technology for stablecoin. Industries seeking to dominate in the future are securing the present by adapting to emerging trends, mostly in the digital space. Online payment methods involving cryptocurrencies, such as the leading bitcoin commonly used in fast-rising industries like the online casino landscape and e-commerce, are increasingly providing viable alternatives to traditional transacting models.
The stablecoin is also set to be fully backed by fiat assets and redeemable to the ratio of 1:1. This offers maximum security to the algorithmic stablecoin. The innovation will also be offered globally on exchanges as one of the digital assets with utmost liquidity. Certified public accountants will give monthly attestation reports to confirm that assets are available and validate the true value of specific stablecoins. From onset, GMO Trust gives priority to transparency and security.
GMO Internet Group has been a trailblazer in internet finance, digital assets, and general internet infrastructure. The corporate successful corporate group is globally recognized as the biggest FX trading site and has dominated for seven successive years in trading volume. The group also runs a Financial Service Agency in Japan regulated e-banking. From the massive bitcoin mining activities launched four years ago and the active development of GYEN launched in 2018, it has been quite a journey actualizing the dream, and the clearance granted by the New York State Department of Financial Services is a tremendous milestone.