INX Limited, operator of regulated cryptocurrency exchange and a digital security trading platform has announced its partnership with GMO-Z.com Trust Company, Inc. to list the world’s first regulated Japanese yen stablecoin. INX’s subsidiary INX Digital, Inc. (INXD) will offer GYEN to retail and institutional investors, as well as GMO Trust’s USD-backed stablecoin, ZUSD.
New York-based company GMO Trust is a subsidiary of Japanese financial services and internet giant, GMO Internet Group. GMO Trust was established as a limited purpose trust company regulated in New York and launched GYEN and ZUSD to expand GMO Group’s cryptocurrency footprint.
The official announcement noted that the company sees a daily FX turnover of over $6.6 trillion a day. TheUS Dollar against the Japanese Yen (USDJPY) is the second most traded currency pair after the Euro against the US Dollar (EURUSD). The introduction of this Japanese Yen stablecoin on INXD expands the company’s offering and provides a new trading venue with no closing times for the millions of retail, and thousands of institutional FX traders to invest and speculate.
Corporate clients can take advantage of more efficient Japanese Yen-backed payment solution, with instant settlement in digital wallets as opposed to the traditional market T+2 experienced in the underlying asset.
In the beginning, GYEN and ZUSD will be traded against the US Dollar and Bitcoin. The company said it will include additional pairs in the future, and unlike traditional FX markets, this digital version will be open on weekends and holidays too.
Stablecoins are becoming more and more popular as alternative payment method with the issuance of over $113 billion in stablecoins. In the beginning of 2021, the Office of Comptroller and Currency, the US federal banking regulator, confirmed that banks may use stablecoins to facilitate payments to customers and remarked the speed and efficiency of such instruments relative to more traditional payment methods.
Shy Datika, founder and CEO at INX commented:
INX is proud to partner with GMO, a global financial services powerhouse that is issuing financial-grade stablecoins. GMO has a very synergistic portfolio of businesses that directly aligns with our customer base, which we are ideally positioned to service on the digital asset side as a US regulated cryptocurrency platform. To put it into perspective, daily turnover in Bitcoin is around $40 Billion, while in USDJPY it is closer to $750 Billion. We are very excited to finally close the gap between the FX and cryptocurrency worlds.
Ken Nakamura, CEO of GMO Trust said:
GMO’s new stablecoins, including the first regulated Japanese yen stablecoin GYEN, demonstrate our firm belief that tier one institutional traders are ready to embrace innovative digital assets. We’re thrilled to bring these stablecoins to INX’s industry-leading exchange, which is built in accordance with top U.S. regulatory standards. Traditional FX brokers are actively exploring 24/7 digital FX through the utilization of stablecoins. We’re confident that the INX platform will attract the largest financial firms with its advantages in compliance, safety and technology.
