New York Approves Its First Publicly Available Japanese Yen Stablecoin

The New York State Department of Financial Services, the Bitlicense regulator, has authorized GMO to issue stablecoins in US dollar and Japanese yen positions. The latter “will be the first of its kind to be open to the public.” So far, the regulator has issued 27 charters and licenses to companies involved in crypto activities.

First regulated yen stablecoin approved in NY

The New York State Treasury Department (DFS) has chartered Trust Company Inc., a subsidiary of Japanese giant GMO Internet, under the New York Banking Act. This enables the company to act as a limited liability trust company, the regulator announced on Tuesday, explaining the following:

With the approval of DFS, GMO is authorized to issue, manage and redeem Japanese yen and US dollar-bound stable coins in New York. The Japanese yen stablecoin will be the first of its kind to be open to the public.

“Including the charter issued by the GVO, DFS has so far approved 27 charters and licenses for companies that are active in the virtual currency business,” the announcement continues.

Ken Nakamura, President of GMO-z Trust Company, commented, “We are starting our move to issue the first regulated JPY-linked stablecoin that many consider a safe haven. But we are also pioneers and innovators in this area who want to develop new applications of blockchain technology that change our relationship with traditional financial services. “

DFS began licensing companies involved in cryptocurrency businesses in 2015 and has since revamped its approach to crypto regulation. “This includes streamlining the process for companies to adopt new coins through a self-certification framework and greenlist for coins, leveraging the department’s conditional approval authority, and providing new clarity about DFS processes and expectations for applicants and licensed companies,” so described the regulator.

Do you think GMO is regulated? Yen stablecoin will be popular in the US? Let us know in the comments below.

Photo credit: Shutterstock, Pixabay, Wiki Commons

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