In challenge to banks and fiat currencies,Nexus Markets and GMO-Z.com tie-up to promote GYEN vaults

Karthik Subramanian

GMO-Z.com Trust Company, the regulated stablecoin subsidiary of the Japanese internet conglomerate GMO Internet Group, has announced a partnership with Nexus Markets to offer JPY-pegged GYEN and USD-pegged stablecoin ZUSD vaults.

Nexus Markets is a major provider of liquidity for GYEN and ZUSD for a variety of exchanges and have now started to support their customers more by offering an interest of 7% on GYEN deposits and 11% on ZUSD deposits. This is the first instance of users being able to get positive yields from GYEN and ZUSD.

“Broadening our partnership with GMO Trust further showcases Nexus’ transformative platform to earn interest on digital assets including fiat,” said Ian McAfee, CEO of Shift Markets and Nexus. “We believe that providing 7% yield on negative-yielding JPY fiat presents a truly significant allocation and investment proposition for retail and institutional clientele to utilize, which cannot be found elsewhere.”

The two companies, as part of the partnership, would also list the 2 stablecoins on GMO and would look to push the usage of both these stablecoins to their customers. It was only recently that GYEN was launched by Binance and GMO as a stablecoin pegged to the JPY. This would be a huge boost for cross-border payments which can now be done via GYEN.

“We are very pleased to expand our partnership with Nexus in introducing these innovative GYEN and ZUSD stablecoin Vaults,” said Ken Nakamura, CEO of GMO Trust. “It provides a less volatile and compelling way to earn meaningful yield in today’s interest rate world simply by holding historical safe have currencies like JPY and USD in digitized form.”

The idea behind providing interest on stablecoin deposits is not only to encourage its usage but also pitch them as alternatives to their fiat world counterparts. Just as how banks give interest on deposits in fiat currencies like JPY and USD, the exchanges and other crypto services companies also offer stable interest on their digital counterparts.

Add to this is the fact that nowadays, the interest given on deposits by banks is quite minuscule and so interest rates of 7% and 11% for GYEN and ZUSD respectively, with their values pegged to JPY and USD, should be a good source of income for those who want to hold large amounts of these stablecoins and this would encourage more and more users to start holding their savings on digital stablecoins that offer better interest.

 

 

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