GMO says its new coin will be focused on remittances, praising the success of the stablecoin market.
Japanese internet conglomerate GMO Internet Co. Ltd confirmed plans to release a cryptographic stablecoin, Cointelegraph Japan reports Tuesday, Oct. 9, pegged to the Japanese yen.
GMO, which entered the Japanese cryptocurrency exchange market in May last year, intends to begin issuing tokens, dubbed GMO Japanese Yen (GJY), during the 2019 financial year.
The news marks a further potential player in the yen-pegged stablecoin market, with several other corporations signalling their intentions to launch assets of their own in recent months.
GMO confirmed the main impetus behind its decision was to target international remittances.
“We have banks and trust licenses in Japan, so we will issue (GJY) in Asia, but we can store assets in Japan as well,” GMO founder and president Masatoshi Kumagai told CT Japan, adding:
“If that happens, everyone will not be worried like with Tether; it can be said that GMO has a bank there and keeps fiat there.”
Tether, a USD-backed stablecoin, has faced rumors that it does not have adequate fiat reserves to back its token issuances. In June, an unofficial audit noted that Tether’s token issuances are supported by the appropriate number of dollar holdings, with the company’s bank accounts not named.
GMO Internet also noted that the GJY was “highly likely to be an ideal currency that combines high creditworthiness, low fees and speed of remittance,” noting:
“By issuing the yen-pegged currency, GMO Internet will continue to support borderless transactions with creditworthiness.”
In July, GMO launched its blockchain-powered online bank, a joint venture between several of the company’s subsidiaries and Aozora Bank.
In the U.S., both Gemini and Paxos last month confirmed they would issue USD-backed stablecoins. More recently, PwC announced it would provide tech expertise to decentralized lending platform Cred to deliver transparency to their USD-backed stablecoin.
Kumagai added that GMO would seek to list GJY on “multiple” international exchanges.
Source: Cointelegraph https://cointelegraph.com/