Japan’s GMO Internet Gears for Yen-Pegged Stablecoin Launch in 2019

The company aims to bolster its presence in the crypto market with the planned 2019 launch of GMO Japanese Yen (GJY).

Tokyo-based GMO Internet Group has revealed plans for a 1:1 Japanese yen-collateralized virtual coin. The company, which has a crypto exchange and mining division, said on Tuesday it would roll out GMO Japanese Yen (GJY) in 2019 in a sign that the crypto business is becoming a significant income source for the service provider.

GMO Internet is still working on the rules to govern where and how underlying GJY fiat reserves will be held. The company will develop the coin through its international division Z.com, which currently offers cloud mining service. GJY will target mainly Asia, which is the core business region for the group.

“Stablecoins can be one of the solutions to hyperinflation afflicting many developing countries as an alternative currency to the unreliable local currency although issues such as true decentralization must be overcome. Also, as the cashless payments are increasingly spreading in developed countries, stablecoins have potential to transcend national currencies and be a global-standard for the innovative financial infrastructure,” the company said in its statement.

Despite operating in the crypto space for more than a year, GMO Internet has held back on developing its own coin due to market volatility. After conducting an analysis, the company decided that a stablecoin would be the most appropriate choice. GJY will enter a market dominated currently byTether (USDT) but with significant changes going on after the recent fiat-pegged coin euphoria saw the launch of severalnewprojects.

“GMO Internet positions the cryptocurrency business as its strategic business sector and is already engaged in cryptocurrency exchange business and cryptocurrency mining business. Starting with the launch of the new “Yen-pegged currency,” we will now support borderless cryptocurrency transactions,” the statement said.

The Japanese company waded in crypto waters last May by establishing the GMO Coin exchange, following it with a mining division several months later. Recently, GMO Internet announced that its planned web bank would use blockchain as one of the methods for payment settlement.

According to the latest GMO Internet financial report, the crypto business had 255 million yen ($2.3 million) in operating profit for the second quarter of this fiscal year. The total for the group was 6.5 billion ($57.4 million).