New York authorizes first Yen stablecoin operator in US

The Japanese GMO company will now be able to offer the New York public stablecoins tied to the yen and the dollar.

New York authorizes first Yen stablecoin operator in EUANOTÍCIAS
New York gave the first authorization to a stablecoin supported by the Japanese Yen to operate in the US.

According to an announcement on 29 December, the New York Department of Financial Services granted the Japanese company GMO-Z.com a permit to manage the US. and Yen-backed stablecoins in New York.

Given New York’s status as a global centre, NYDFS is the most prominent state financial regulator in the US. It is also one of the Bitcoin Benefit most aggressive. A pass to operate in New York often opens up the rest of the country.

GMO’s status is like a limited liability trust rather than a full bank, the main difference being in the authorization to handle deposits. While a stablecoins operator usually needs to have the ability to hold stocks of indexed assets, the GMO statute limits its rights to hold other types of non-central deposits for its ability to „issue, manage and redeem“ its stable currencies.

The right to issue such non depository letters has been a point of contention between state regulators such as the NYDFS and US national banking regulators.

GMO President and CEO Ken Nakamura said: „We are innovating with our initiative to issue the first JPY-indexed stablecoin, which many see as a safe haven asset.

NYDFS recently made changes to its famous BitLicense, including a conditional format that links newly licensed companies with existing licensees. The first BitLicense conditional went to PayPal, facilitating the launch of its new crypto services early this fall with the help of long-time licensee Paxos.