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こんにちは, GYEN. Liquid Welcomes Digital Japanese Yen, the World’s Safe Haven Currency.
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Liquid is striving to provide global access to the most reputable stablecoins on the market, and become a one-stop-shop for our community.
We are excited to announce we just listed GYEN, a JPY stablecoin described by its issuer as “the first regulated digital JPY”.
We now offer seamless conversion of GYEN and JPY by offering a GYEN/JPY Order Book, allowing instant conversion 24/7.
GYEN and JPY is combined into a single order book, which optimizes liquidity and provides diversified digital fiat options to Liquid’s traders.
Additionally, Liquid will soon offer a truly digital USD/JPY market, unlocking synergies with one of the most widely traded forex pairs worldwide. This will unlock synergies with one of the most widely traded forex pairs in the world.
What makes Japanese yen a safe haven currency?
We often see the Japanese Yen's value rising amid tough economic times in the financial markets.
In a nutshell, when stock markets decline, we generally witness the Japanese yen rise in value. The Japanese yen is one of the three safe haven currencies alongside the United States dollar and Swiss franc.
However, the question arises: Why is the Japanese Yen a safe-haven currency?
Historically, Japan has always had positive trade surpluses as it exports more than imports. Though debt has been increasing for the last several years, other countries continue to owe more to Japan than it owes to other countries, making it a creditor. Combined with Japan’s reputation as a trusted economy when it comes to repayment, explains why the Japanese yen is widely regarded as a safe haven currency.
Unlike many countries, Japan doesn’t have dollar-denominated debt issues. Therefore, Japan’s currency won't get squeezed like countries that borrow in dollars and other foreign currencies.
Another reason why JPY is considered a safe haven currency due to negative interest rates in Japan, encouraging Japanese citizens to invest heavily in global markets and entities.
It’s also commonly believed that during economic uncertainty, Japanese investors repatriate their investment from abroad, essentially pushing the value of JPY higher. This act of selling foreign assets and converting them into yen gives a positive boost to the Japanese economy.
Needless to say, current and future investors are advised to consider the fact that past performance isn’t necessarily an indicator of future performance.
Combining GYEN and JPY into Single Order Book
Liquid positioning GYEN with the same standing as JPY Fiat
Liquid currently has the largest BTC/JPY market globally, consistently averaging $300 million in daily volume. Given the demand in the marketplace for a digital version of JPY, we’ve decided to combine its BTC order book with GYEN/JPY, which will optimize liquidity and provide a fully digital way to access this market. Users depositing GYEN on Liquid’s exchange will be able to seamlessly exchange between GYEN and JPY and then enter into Liquid’s fiat order books. This offers significant potential to connect local traders who leverage JPY with global cryptocurrency traders.
The World’s First Synthetic, Digital USD/JPY Pair
Regulated Stablecoin Clearinghouse
Liquid is set to launch a new clearinghouse for regulated, global fiat-backed stablecoins to support growing demand for stablecoin swaps, FX trading, and expansion of digital fiat onramps/offramps. Trading pairs featuring stablecoins and other popular tokens such as Bitcoin and Ethereum have increased dramatically in popularity this year; however, the market is missing a clearinghouse to easily swap between stablecoins backed by major global currencies. As two of the largest digital asset companies in the APAC region,
Liquid has entered into a strategic partnership to leverage GMO’s regulated, financial-grade GYEN and ZUSD stablecoins to create the first synthetic, digital USD/JPY pair, the second most traded forex pair in the world.
These stablecoins are key components of Liquid's Stablecoin Exchange initiative, which will provide Liquid users a service to lend and borrow stablecoins and trade synthetic FX pairs 24/7 using credible, fiat-backed stablecoins.