Japanese online infrastructure giant GMO Internet on Monday announced its plans to launch a yen-pegged digital currency.
Dubbed GMO Japanese yen, the stablecoin will be launched outside Japan, and the company is aiming to release it within the first half of next year. GMO is in line to receive regulatory approvals before the tentative launch schedule.
The announcement detailed that the internet giant will launch the stablecoin in a proprietary blockchain called GYEN, and it is now in a testing phase as the development is already complete.
“GMO Internet’s development and planned launch of GYEN will be through Z.com, the global brand for overseas strategies of GMO Internet Group,” the Japanese company stated. “As the GYEN blockchain development has been completed, GMO Internet is currently carrying out an extensive internal testing of the technology.”
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Another player to disrupt the remittance industry
Mentioning the utility of the upcoming stablecoin, GMO clarified that it would be used in borderless trading, payments, and remittance.
“One of the challenges of promoting and enhancing market liquidity of cryptocurrencies is stabilizing price volatility which poses a risk to global remittance and payments. Amid such circumstances, “stablecoins” have been attracting attention as price-stable cryptocurrencies whose values are backed by a fiat currency or other underlying asset,” the announcement added.
GMO dived into the digital asset business in mid-2017, when the sector is rallying to touch its peak in months. The company operates a cryptocurrency exchange along with business in the crypto mining sector, both of which are operational in Japan.
Meanwhile, other Japanese conglomerates are also not far behind in expanding their crypto exposers. SBI Holdings recently announced its investment plan in two crypto subsidiaries of Boerse Stuttgart Group. The company also recently invested an undisclosed amount in the digital securities platform Securitize.