Japan-based conglomerate GMO Internet Co. Ltd (OTCMKTS:GMOYF) has reportedly confirmed its plans to launch a cryptographic stablecoin, according to a report published on Cointelegraph Japan on October 9. The cryptographic stablecoin which is scheduled to launch in 2019 will work closely with the Japanese currency yen.
The conglomerate is expected to make the cryptographic stablecoin available in 2019 financial year. The news hints at the ever-growing yen-pegged stablecoin market. Just like GMO, there are other organizations that are mulling to make similar assets available in the next few months.
GMO intends to target international remittances through recent development, as reported by the company. Commenting on the Yen-pegged stablecoin market, Masatoshi Kumagai the founder and president at GMO said, the company will issue GJY in Asia as banks and trust licenses are already there in Japan. He supported his statement by providing an example of Tether. He said that people will not be worried like they have been with Tether as GMO will store fiat money in the bank.
Tether is a stable coin supported by the USA. The stablecoin has been condemned for not having enough research in the bank as a token of insurance. However, in June, there were reports of some unnamed bank to have dollar holdings has issuances of the token. This created much confusion in the mind of stablecoin investor and many were forced to draw back from investing.
GMO Internet expects its new stablecoin GJY to come up as the most promising currency, which will experience a combination of creditworthiness, speedy remittance processes, and low fees. The company in a statement stated that through the well-though launch of stablecoin the company will continue to support transaction over the border with creditworthiness.
GMO was in news earlier in July for launching an online bank powered by blockchain. The bank is a result of joint venture between many companies that are subsidiaries of some companies and Aozora Bank. Gemini and Paxos, in the US, have allegedly confirmed their intention to launch USD-backed stablecoins. A recent announcement by PwC claims that the company is working towards providing tech expertise to contribute in the decentralization of lending platform Cred to further support transparency to the USD-backed stablecoin. Kumagai notes that the company GMO may mull to list GJY on multiple international exchanges.
Stablecoins are price-stable cryptocurrencies that values of which are backed primarily by legal currencies. Stablecoins can be classified in three categories, “fiat-collateralized”, backed by legal currencies, “crypto-collateralized”, backed by other cryptocurrencies, and “non-collateralized”, not backed by any assets but stabilized with a smart contract mechanism.
The recent news clearly hints at the company’s intention to prepare itself for a fiat-collateralized stablecoin backed by the Japanese Yen (Yen-pegged currency). The company, which is a publicly traded blockchain stock, has already set long-term plans regarding its stablecoin as it mulls to use for borderless transactions, as reported by BenZingA. No further details were released by the company on its plans for stablecoin. The launch, however, is expected to strengthen the company’s market share in the coming times.