GMO Internet Is Scheduled To Launch A Japanese Yen-Backed Cryptocurrency
GMO Internet has announced preparations to launch a Japanese Yen-backed cryptocurrency as reported through their website news section. The stablecoin is to be developed with the intention of entering payment services in the cryptocurrency sector allowing people to buy crypto that is less volatile and can trust for commercial use.
Stablecoins are cryptocurrencies that are generally backed by legal currencies but can also be backed by commodities such as precious metals. There are even some stable coins in development which are backed by a basket of other cryptocurrencies. GMO’s stable coin will be backed by the Japanese Yen using the ticker symbol of ‘GJY’.
GMO has shown interest in the crypto sector as they have positioned their business strategies and engaged in cryptocurrency exchange and mining as of 2017. With the release of the Yen-backed stable coin, GMO can support borderless crypto transactions allowing the company to buy and sell cryptocurrency internationally.
The total market capitalisation of stablecoins has reached over three billion dollars and the transaction volume of Tether is the second highest of all behind Bitcoin. This suggests investors trust buying crypto that has mechanics to stabilise its price. These coins are more likely to become adopted for commercial use than a coin that is volatile and fluctuates in price.
GMO believes that stablecoins have the potential to become the global-standard for the innovative financial infrastructure. There have recently been a few new stablecoins that have entered the market such as Circles USDC, Paxos Standard Token and the Gemini Dollar which have taken a considerable share of the market. There’s potential for more to buy crypto and get involved from these coins as the goal of the industry is to create a trusted currency that improves on the shortcomings of the traditional financial industry.
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