Quantstamp audited GYEN, the first regulated Japanese yen (JPY) stablecoin issued by GMO-Z.com Trust Company (“GMO Trust”), a subsidiary of financial and IT conglomerate GMO Internet Group (“GMO Internet”), and powered by Ethereum. Users can trade GYEN at Liquid. In addition to GYEN, Quantstamp also audited ZUSD on behalf of GMO Trust.
GMO Internet is a market leader in Japan for internet infrastructure and many online businesses. In 2020, GMO Internet received over 200 billion yen in revenue.
Regulating Stablecoins
GMO Trust prioritized getting its stablecoins properly regulated. GMO Trust received the coveted BitLicense from the New York State Department of Financial Services. In order to be approved for the trust, GMO Internet had to meet stringent requirements for its cybersecurity programs, as well as meet federal standards for anti-money laundering and economic sanctions.
The mainstream adoption of stablecoins is impossible without a clear regulatory framework. Historically, the blockchain industry lacked regulatory clarity which led to increased risk and uncertainty for well intentioned businesses. Recently, regulatory clarity in the US has improved after the Office of the Comptroller released this letter in January. The letter clarified that banks can:
- Custody stablecoins on behalf of their customers
- Offer services that exchanges fiat for stablecoins directly on their platforms
- Run blockchain nodes to independently validate stablecoin transactions
The clarity provided by the Office of the Comptroller is likely to contribute to more banks benefiting from the faster settlement times and composability enabled by blockchain technology.
Securing the Financial Infrastructure of Tomorrow
Banks and other financial institutions are finally embracing blockchain-based innovations due to increasing regulatory clarity, insured custodial solutions, and quality security services. Quantstamp will continue working with international companies like GMO Internet, NGOs such as the World Economic Forum, and governments like Dubai in order to educate them about CBDCs, and help them produce stablecoins and other blockchain-based applications.
Quantstamp looks forward to continuing to provide the secure foundation necessary for the world to safely transition to the future of finance.
.png)
