Bringing the world’s first regulated JPY stablecoin to Liquid

In Crypto Spotlight

Stablecoins aren’t a new development by any means. Tether, the most widely known example of a stablecoin, has been traded since 2015, albeit not without controversy. However, more and more users are being driven towards stablecoins, construing them as the best of both worlds the cutting-edge advantages of crypto without the stress of wondering whether holding a token will cause you to lose 10% or more overnight. 

With the rise of Defi and numerous crypto applications, the total market capitalization of all stablecoins has exceeded $15 billion in 2020 according to CoinGecko. Currently, there are not only US dollar-pegged stablecoins like USDT, USDC, PAX but also DAI, IDRT, (IDR), QCAD (CAD), BRZ (BRL), TRYB (Turkish Lira), and other stablecoins in the market.

Liquid is striving to provide an extensive choice of the most cutting-edge stablecoins on the market and become a one-stop-shop for our community. 

We are excited to announce the dual listing of GYEN, the world’s first regulated Japanese yen stablecoin, and ZUSD, a U.S. dollar-backed stablecoin.

From March 3rd Liquid will offer seamless conversion of GYEN and JPY by offering a GYEN/JPY Order Book that allows traders to convert Stablecoin and Fiat 1:1 24/7 real-time. GYEN and JPY will be combined into a single order book, which will optimize liquidity and provide diversified digital fiat options to Liquid’s traders.

Liquid will soon offer a synthetic FX pair of USD/JPY via stablecoins. This will unlock synergies with one of the most widely traded forex pairs in the world. 

GYEN is a 100% fiat-backed ERC-20 stablecoin developed and issued by GMO-Z.com Trust Company. Japanese Yen that backs GYEN in circulation is held securely in FDIC insured trustee bank accounts. Every token will have a one-to-one reserve balance and can always be redeemed at a 1:1 ratio.

GYEN enables you to trade one of the most traded currencies, JPY, with other currencies in crypto and expand your trading strategies. Aside from GYEN, a new USD-pegged stablecoin ZUSD will be also launched simultaneously.

GMO Trust stablecoins allow you to seamlessly trade across our high-speed and global network of partner exchanges. You can hedge volatility and experience digital fiat trading with ease through our partnered platforms. You can also enjoy noticeably faster counterparty settlement with a near-instant settlement process across our partnered settlement networks.

Learn more about GYEN and ZUSD at The first regulated JPY-pegged stablecoin, GYEN.

GYEN and ZUSD Use Cases

Today we would like to highlight several major use-cases for GYEN and ZUSD stablecoin. We believe it can help Liquid users to have a bird-eye view when making a purchase decision on our exchange platform. 

  1. Institutional and retail traders are able to protect against downside movement by converting crypto into a stable value asset during periods of extreme volatility. 
  2. Stablecoins can serve as a method for purchasing and redeeming other digital assets.
  3. Because GYEN and ZUSD are fiat-backed stablecoins, users can apply trading strategies to gain yield and/or hedge for institutional and retail traders. Traders will be able to leverage these strategies with the efficiencies of blockchain-based fiat.

Clearing/Settlement: GMO Trust’s stablecoins remove the restrictions inherent to the current financial ecosystem, allowing 24/7/365 settlement of assets with digitized fiat currency. 

  1. Alternatives to Market Incumbents: GMO Trust offers a fully regulated, 1:1 asset-backed solution, which could replace unregulated, partially collateralized stablecoins currently dominating the marketplace.  

Some longer-term user cases are: 

  1. Cross-Border Remittance: GYEN functions as a standard global payment and money transfer solution for the Yen-based economy (and ZUSD serves the same function for the USD-denominated economy).  
  2. Money Transfers: Stablecoins are digital assets that can be easily and securely transferred anywhere at any time, serving the global economy as a trustworthy medium of exchange with a universal understanding of its fiat-based peg.  
  3. Utility Trading: GYEN and ZUSD can be efficiently utilized for peer-to-peer  (“P2P”) energy trading transactions. 

About GMO:

GMO Internet Group, based in Tokyo, is a global market leader in the Internet infrastructure, Internet finance, and the digital asset space since its inception in 1991. It operates the world’s largest online FX trading platform, an Internet bank, a cryptocurrency exchange, a cryptocurrency mining operation, a payment gateway, and a regulated stablecoin. Its parent company GMO Internet, Inc. (TSE: 9449) is headquartered in Tokyo, Japan. For more information, please visit https://www.gmo.jp/en/

GMO-Z.com Trust Company, Inc. (“GMO Trust”), based in New York, is a Limited Purpose Trust Company, regulated by the New York Department of Financial Services. Issuing the World’s First regulated JPY stablecoin “GYEN”, GMO Trust also offers a USD stablecoin “ZUSD”. GMO Trust is on a mission to bring traditional finance into the digital age with blockchain services. For more information on GMO-Z.com Trust Company, Inc., please visit https://stablecoin.z.com/.

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