In addition to its digital U.S. dollar and euro custodial solutions, crypto custody platform Anchorage Digital is now adding support for a Japanese yen (JPY) stablecoin, boosting fintech use cases in Japan ranging from payments to payroll.
Anchorage custody of the GYEN stablecoin is made possible with the collaboration with Japanese financial services and internet giant GMO-Z.com Trust Company of GMO Internet Group.
According to the companies’ Tuesday announcement, the JPY stablecoin is backed 1:1 by assets held at FDIC-insured banks and has been greenlit by the New York State Department of Financial Services (DFS).
Stablecoins like USDT and USDC have emerged as the foundations of crypto industry and the driving force behind new trading paradigms like decentralized finance (DeFi). Diogo Mónica, co-founder of Anchorage, claims that non-crypto natives are now becoming aware of stablecoins’ larger range of uses, which is even more evident when delivering regulated stablecoins in a local currency, like Japanese yen.
“Think about a ride hailing firm or food delivery company, or payroll or remittances. This is about instant availability of funds and the velocity of money in society,” said Mónica. “Crypto is just implementation detail. It’s just a way that we built on the internet that has caused this to be so cheap.”
In terms of the current climate, Mónica added, events such as the collapse of terraUSD and LUNA, and the bankruptcy of several prominent crypto firms have led to many investors selling “high risk” assets to purchase “safer” assets.
Mónica noted that there weren’t many discussions on crypto being part of bankruptcy procedures, or whether assets are commingled, back in 2021. He added that such questions are more commonly raised this year. The co-founder argued that Anchorage have the “clearest answers” as they are a regulated federal bank.
