The New York Financial Services Department approved the first Japanese-yen-pegged stabilcoin in the US market. The regulator GMO-Z.com has awarded Trust Company Inc. a contract to issue GYEN stablecoins in the state.
Chief Inspector Linda Lacewell announced in a press release that the company has the “authority to issue, manage and use Japanese Yen and US dollar-pegged stablecoins in New York.” In this case, the Japanese Yen stabilcoin will be the first of its kind publicly available.
NYDFS also approved the issuance of ZUSD, a US Dollar-backed stablecoin developed by the same company. GMO-Z stands out as a subsidiary of Tokyo-based IT giant GMO Internet, which focuses on internet infrastructure, online media and mobile entertainment.
Inspector Lacewell also stated that stablecoins are gaining increasing importance in the digital money industry.
GMO-Z President and CEO Ken Nakamura spoke about stablecoin as follows:
“WE ARE FORECASTING DEVELOPING NEW BLOCK CHAIN TECHNOLOGY APPLICATIONS THAT TRANSFORMING OUR RELATIONS WITH TRADITIONAL FINANCIAL SERVICES AND MAKING INNOVATIONS IN THIS SUBJECT.”
The company started developing the GYEN in 2018. A year later, it launched the Ethereum-based stablecoin. The company also operates in digital currency exchange and block reward mining.
The rise of Stabilcoins continues to attract the attention of regulators globally. A member of the US parliament recently discussed the STABLE Act, which aims to handle stablecoin issuers as banks. The law requires these issuers to obtain the approval of a bank statute and the Federal Reserve six months before starting operations.