This week, the Japanese internet giant, GMO Internet stunned the crypto market with its announcement that the company will launch a stablecoin in Q2 2020. The firm plans to utilize the yen-pegged digital currency to further development on the platforms token ecosystem and online infrastructure. The news demonstrates rising interests from both traditional financial firms and technology agencies within the country.
GMO Japanese Yen
GMO Internets' crypto strategy focuses on the issuance of a stablecoin dubbed the GMO Japanese Yen. Interestingly, the firm plans to launch the stablecoin outside of Japan primarily. Currently, GMO awaits regulatory approval on the strategy.
Discussing the use of these tokens, company officials stated that their primary use will be to facilitate borderless trading, payments, and remittance. In turn, the token will help further promotions and enhanced market liquidity. Most importantly, the token will function as a means to stabilize price volatility within the space.
As part of GMO Internet's crypto strategy, the team developed a completely new blockchain from the ground up. The permissioned and centralized GYEN blockchain entered final development this year. Currently, the blockchain is in a Beta testing stage. Here, the firm continues to conduct extensive internal testing to verify the true capabilities of the platform.
GMO Internet will employ the use of its global marketing subsidiary Z.com to promote the tokens internationally. Z.com specializes in global brand recognition. The firm's primary goal is to improve overseas strategies and market penetration.
The Tokyo-based internet provider GMO Internet initially entered service back in 1995. The firm currently trades under section 1 on the Tokyo Stock Exchange. The company continued to see expansion since its inception for a combination of reasons. For one, the firm provides 24-hour customer service to clients. Additionally, the company offers an impressive list of employee benefits including free meals and child care services.
GMO Internet decided to enter the Blockchain sector in 2017 during the now infamous crypto break out. The firm currently operates one of only a handful of regulatory compliant crypto exchanges within the country. In addition to its trading platform, GMO also hosts several large mining facilities across Japan as well.
Japanese Crypto Trend
GMO Internet's latest strategy falls in line with the larger trend of major Japanese firms entering the crypto sector. Already, the country has seen some of its largest financial institutions take a step towards further blockchain integration. For example, SBI Holdings, one of the largest financial firms in the country, recently announced large investments in two crypto startups.
A combination of a transparent regulatory framework and favorable tax laws continues to drive further blockchain investment towards Japanese shores. This welcoming attitude coupled with the anti-crypto stance of neighbors such as China makes Japan the premier crypto space in Asia.
GMO Internet Moving Forward
Considering the sheer size and capabilities of the GMO Internet platform, it's hard to imagine a scenario in which the firm doesn’t achieve success. For now, the Japanese crypto sector continues to showcase to the rest of the world how to integrate blockchain technology the right way.