GMO Internet Group partners with Binance for launch of GYEN
GMO-Z.com Trust Company, a subsidiary of the Japanese giant GMO Internet Group, has announced a tie-up with the crypto exchange, Binance for launch of the world’s first Yen-based stablecoin, GYEN, for trading on Binance.
GMO-Z.com is a New York-based regulated stablecoin subsidiary of GMO Internet Group, which is a Japan-based internet conglomerate and their coming together with the largest crypto exchange, in terms of trading volume and number of users, Binance has generated a lot of buzz in crypto circles.
They have announced that GYEN would be fully regulated by the New York Department of Financial Services (NYDFS) and would be 100% fiat-backed and audited monthly by an independent, accredited national accounting firm.
GYEN would be available for trading on Binance against other major cryptocurrencies like Bitcoin and USD Tether as well and this should also help facilitate the use of crypto and GYEN as a means of cross-border digital payments.
GYEN seems to have solved a lot of criticism surrounding the largest stable coin currently in use, USDT, by opting to be regulated and also being fully fiat-backed and audited as well. Sceptics of USDT have always criticised USDT for not doing enough to ensure that they are fully fiat-backed and dodging auditing of their books.
“Binance has led the way in cryptocurrency trading and building impactful, innovative solutions for its blockchain ecosystem,” said Ken Nakamura, GMO Trust CEO. “As we digitise one of the world’s most-traded currencies, providing this asset to Binance’s ecosystem of retail and institutional users is a key sign that digital assets are moving mainstream.”
This is one step closer for the crypto domain for mainstream adoption as the trading of GYEN on Binance is likely to increase its usage manifold in the coming months and it is likely that people and businesses are going to be tempted to use it for payments as well. Trading of bitcoin and cryptos has been going on strong in many parts of Asia especially in countries like Japan and South Korea where the regulators are also looking at them favourably as a means of handling payments and also as trading instruments.
The local government in New York is also known to be supportive of cryptos in general and it is no wonder that they have chosen to authorise GYEN and this should give added confidence to traders and investors. Stablecoins are mainly used as a store of value and also for payments rather than for trading as they don’t change much in value as compared to the stablecoin that they are pegged to. So, we would expect GYEN to be used by businesses and traders for handling digital payments in the coming months.
Binance has announced that GYEN would be available for trading at its exchange from May 12 but due to regulatory constraints, it would not be available for trading for residents of Japan as yet.