The New York State Department of Financial Services (Bitlicense Regulator) has authorized GMO to issue stablecoins that are pegged to the U.S. dollar and Japanese yen. The latter “will be the first of its kind available to the public.” So far, regulators have issued 27 articles of association and licenses for companies engaged in cryptographic activities.

New York’s first regulated Yen stablecoin approved

According to the New York Banking Law, the New York State Department of Financial Services (DFS) has granted a charter to Trust Company Inc., a subsidiary of the Japanese giant GMO Internet. The regulator announced on Tuesday that this enables the company to operate as a limited liability trust company, specifying:

Approved by DFS, GMO is authorized to issue, manage and redeem stablecoins pegged to the Japanese yen and the US dollar in New York. The Japanese Yen stablecoin will be the first currency available to the public.

The announcement continued: “Including the charter granted to GMO, to date, DFS has approved 27 charters and licenses for companies engaged in virtual currency business activities.”

Ken Nakamura, President of GMO-z Trust Company, said: “We are taking action to issue the first regulated yen-linked stablecoin, which is regarded by many as a safe-haven asset. But we are still a pioneer in this field. And innovators, they envision building new applications of blockchain technology to change our relationship with traditional financial services.”

DFS began issuing licenses to companies engaged in cryptocurrency business in 2015, and has since revised its cryptocurrency regulatory methods. “This includes simplifying the company’s adoption of new coins through a self-certification framework and coin green lists, leveraging the department’s conditional license authorization, and providing applicants and licensed entities with new clarity about the DFS process and expectations,” the regulator describes .

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Do you think GMO is regulated Will the yen stablecoin become popular in the United States? Let us know in the comments section below.

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