Binance and the GMO Internet Group have partnered to list GYEN — the 100%-backed Japanese yen stablecoin, now available for purchase and trading on Binance.
GYEN, a regulated stablecoin pegged to the Japanese yen, will start trading on Binance today.
This follows a partnership between Binance — the world’s largest cryptocurrency exchange by trading volume and user base — and New York-based GMO Trust — a subsidiary of Tokyo-based global financial and tech conglomerate GMO Internet Group.
The GYEN is a financial-grade stablecoin that is designed to see more people benefit from the growing blockchain finance sector.
The companies have agreed to have GYEN purchased directly from GMO Trust, with users able to redeem the token 1:1 for fiat.
Digitising global currencies
The use of stablecoins has grown over the past couple of years as the number of mainstream companies and institutions seeking to adopt digital assets continues to grow.
Stablecoins play a major role in the cryptocurrency market by offering price stability. As a result, the cryptocurrency and blockchain space is attracting new participants whose main reason to avoid cryptocurrencies has been the often high price volatility.
It is this need for a stable digital asset that has led to an increase in the trend towards digitising some of the world’s leading currencies, including USD and JPY.
For example, the popular stablecoins Tether (USDT) and TrueUSD (TUSD) are pegged on the US dollar. In the case of GYEN, it is 100% Japanese yen backed.
“As we digitise one of the world’s most traded currencies, providing this asset to Binance’s ecosystem of retail and institutional users is a key sign that digital assets are moving mainstream,” said Ken Nakamura, GMO Trust’s chief executive.
Apart from being 100% fiat-backed, GYEN is fully regulated in the US by the New York Department of Financial Services (NYDFS), the regulatory body that also licences crypto-related operations of companies like Coinbase, Inc., Square, Inc., Fidelity Digital Asset Services, LLC., Robinhood Crypto and PayPal.
GYEN will be available to institutional firms as well as retail users seeking opportunities in trading, hedging, and arbitrage. The stablecoin will also allow for blockchain-based settlements and payments.