The New York State Department of Financial Services (DFS) has granted Japanese firm GMO-Z.com a charter to operate within New York to legally offer its Japanese yen-pegged stablecoin to citizens there, according to a press release. This is the first yen-pegged stablecoin that will be made available to citizens in New York.
“We’re breaking ground with our move to issue the first regulated JPY-pegged stablecoin, which many see as a safe haven asset. But we are also pioneers and innovators in this space who envision building new applications of blockchain technology that transform our relationship with traditional financial services,” said Ken Nakamura, CEO of GMO-Z.com Trust Company, Inc.
GMO has obtained approval by the DFS to operate and proceed amidst federal debate on how to properly regulate stablecoins across states, which have seen differing sets of requirements from one state to another.
Gold, bonds and currencies have traditionally been the go-to safe haven assets in the last decade. The Japanese yen is an investor and trader favourite in recent years, especially in times of crisis and economic uncertainty. They have also seeked refuge in the Swiss franc and US dollar. However, 2020’s economic turbulence as a result of the pandemic and also the contentious presidential elections in the latter half of the year have sent the USD spiralling downwards.
Aside from Bitcoin, which has performed much better than other assets in the market at present, New York citizens trading on the crypto market will also have legal access to GMO’s yen-pegged stablecoin, providing them with more options to safeguard their wealth.