GMO Internet recently revealed plans to launch a Yen-pegged cryptocurrency stablecoin next year. This move marks another chapter in the company’s drive to expand its involvement in the virtual currency market.
Details of the GJY Stablecoin
The Japanese Internet behemoth announced the plan in a post published on its website on Tuesday (October 9, 2018). According to the announcement, the company putting modalities in place to launch the stablecoin in many Asian countries in 2019.
GMO’s stablecoin is a fiat-collateralized stablecoin backed by the Japanese Yen called GMO Japanese YEN (GJY). Based on the company’s statement, GJY’s launch will come via Z.com, GMO’s cryptocurrency exchange subsidiary.
The Rise of Cryptocurrency Stablecoins
GMO Internet is the latest company to express plans to create a stablecoin. In recent times, stablecoins – cryptocurrencies that are designed to maintain a stable price, have become a significant point of interest for many in the emerging virtual currency landscape.
Presently, there are more than 50 different stablecoins out of which 23 are already in circulation in the digital currency market. In mid-2018, IBM announced plans to create a U.S. dollar-backed stablecoin in collaboration with Stellar. Other companies like Havven and Karbo also recently launched stablecoin projects.
Audit behemoth, PwC also announced a collaboration with Cred to help with the launch of the latter’s U.S. dollar-backed stablecoin. Already, the stablecoins launched by Gemini, Paxos, and Circle are among the 23 in circulation. Off all the stablecoins in existence, Tether remains the most popular and the most widely used.
GMO Internet Pursuing Full Spectrum Cryptocurrency Service Capability
For GMO Internet, the launch of a stablecoin is in line with the company’s drive to become a greater force in the global cryptocurrency industry. Already, GMO Internet has a significant presence in the mining and exchange domains.
Thus, the GJY stablecoin can catapult the business into the payments arena. The company recently partnered with Aozora Bank and will be hoping to adopt the stablecoin into its transaction settlement protocols.
While aggressively pursuing expansion, GMO Internet is also making efforts to comply with regulatory provisions. In Japan, the FSA has in recent times declared its intention of engaging in more robust oversight of the country’s cryptocurrency market.
Do you think the GMO Internet stablecoin will perform better than other stablecoins in the market? Let us know your thoughts in the comment section below.
Images courtesy of GMO Internet Group and ShutterStock