New York Gives The First Authorization To A Stablecoin Backed By The Japanese Yen To Operate In The US
New York Gives The First Authorization To A Stablecoin Backed By The Japanese Yen To Operate In The US
December 30, 2020
New York Gives The First Authorization To A Stablecoin Backed By The Japanese Yen To Operate In The US
New York Gives The First Authorization To A Stablecoin Backed By The Japanese Yen To Operate In The US
December 30, 2020

Report said that New York has given the first authorization to a stablecoin backed by the Japanese yen to operate in the United States.

It has been reported that the New York Department of Financial Services (NYDFS) has granted GMO-Z.com, the Japanese firm, to handle US-dollar and yen-backed stablecoins in New York. 

However, the NYDFS is the most prominent state financial regulator in the United States. A pass to operate in New York often opens up the rest of the country.

GMO’s charter is as a limited liability trust company rather than a full bank, the principal difference being in the authorization to handle deposits.

While a stablecoin operator typically needs the ability to hold reserves of the pegged asset, GMO’s charter limits its rights to hold other kinds of deposits not central to its ability “to issue, administer, and redeem” its stablecoins. 

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As per the report, the right to issue such non-depository charters has been a bone of contention between state regulators like the NYDFS and national banking regulators in the United States.

Ken Nakamura, the president and CEO of GMO, said:

“We’re breaking ground with our move to issue the first regulated JPY-pegged stablecoin, which many see as a safe haven asset.” 

Likewise, the NYDFS recently made changes to its famous BitLicense, including a conditional format that buddies up newly licensed firms with existing licensees.

Thus, the first conditional BitLicense went to PayPal, facilitating the launch of its new crypto services earlier this fall with the help of longstanding licensee Paxos.

Source: Cointelegraph


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Ishita Bora

Ishita Bora is a Senior Content Creator at Digital Notice Media Labs with an experience of 1 year. She has completed her Master's Degree in Language and Linguistics in 2019 from Gauhati University, India. Her interest lies in blockchain technology and cryptocurrency space, as she loves writing about blockchain and other blockchain-related articles. Currently, she is working on blockchain-based news, reviews, featured articles, and guides.