Japenese IT Company “GMO” To Launch Yen Backed Stablecoin

More stablecoins are on the horizon! The latest company to jump on the fiat backed crypto bandwagon are GMO, a Japanese IT tycoon who are planning their very own stablecoin backed by the Japanese Yen for release in 2019.

On Tuesday GMO announced that they will begin full-scale preparations to issue their stablecoin, which will be known as GMO Japanese Yen (GJY) and this comes in preparation for their move into the blockchain settlement and remittance arena.

GJY will be available to Asian markets in the fiscal year of 2019 via Z.com which is a crypto exchange subsidiary also launched by GMO in another effort to cement their grip within the crypto industry.

This introduction of the stablecoin will assist GMO in settling transactions within the mining farms that they own as well as their recently launched web bank which sees them partnered up with Aozora Bank Group which will eventually utilise blockchain technology in order to settle cross-border transactions. 

As we mentioned above, GMO joins a host of other companies who are issuing or has issued stablecoins which as we know are cryptocurrencies that use various methods maintain a fixed or “stable” price. 

Back in July, IBM, who seem to all about adopting the world’s of crypto & blockchain, revealed they were working with the Stellar protocol on the launch of a US dollar pegged stablecoin. Just last month, as well, Gemini, a crypto exchange, Paxos a blockchain startup and Circle, crypto payments firm all announced their own US-backed stablecoins which are already live for trading. 

GMO won’t be the only stablecoin to be tied to the Japenese Yen either, as recently a China-based $ 1 billion blockchain fund revealed their plans to roll out their own Yen-backed token with their launch either taking place at the end of this year or in the first quarter of 2019.

Could this rise of stablecoins be the answer for those wary of investing in cryptocurrencies? Let us know your thoughts on the advent of fiat backed tokens.

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