A cryptocurrency subsidiary of the Japanese internet conglomerate GMO Internet Group has elected digital asset custodian Zero Hash for the settlement of its Japanese yen and U.S. dollar-pegged stablecoins.
According to a press release on Wednesday, GMO-Z.com Trust Company’s GYEN and ZUSD stablecoins are now supported on Zero Hash’s network enabling users to fund, withdraw and settle in digital Japanese yen (JPY).
The companies say the move will eliminate bottlenecks associated with moving and settling in JPY where the cross-border transfer of the Asian currency can sometimes take days or weeks with existing financial rails.
The announcement comes after GMO’s stablecoin subsidiary late last year secured regulatory blessings from the New York Department of Financial Services. In December, GMO was issued a trust enabling it to legally “issue, administer and redeem” yen- and U.S. dollar-pegged stablecoins in New York.
“Many of the institutional counterparties we speak with express frustration over transaction times when dealing with JPY, said Kurt Bierbower, GMO Trust’s senior vice president of Business Development. “With Zero Hash, we set out to solve this problem.”