Key Takeaways:
- Nomura Holdings and GMO Internet Group are partnering to introduce stablecoins in Japan, pegged to the yen and the dollar.
- The initiative includes Nomura’s subsidiary, Laser Digital Holdings, focusing on regulatory compliance and stablecoins-as-a-service.
- Japan’s clear regulatory framework mandates fiat backing for stablecoins and limits issuance to licensed entities.
Nomura Holdings and GMO Internet Group are partnering to introduce stablecoins in Japan, pegged to the Japanese yen and the US dollar.
This collaboration includes Laser Digital Holdings, a subsidiary of Nomura that deals with digital assets.
We’re excited to share the release from our group headquarters, GMO Internet Group, along with Nomura Holdings and Laser Digital.
— GMO-Z.com Trust Company (@GMOTrust) May 27, 2024
Full details about the press release: https://t.co/l95jvwhLzn#stablecoin pic.twitter.com/uWWK84GU4L
The initiative will focus on traditional stablecoin issuance, ensuring regulatory compliance, and offering stablecoins-as-a-service.
Nomura Holdings CEO Kentaro Okuda emphasized the importance of stablecoins in financial markets and their potential to enhance digital asset accessibility in Japan.
Japan has a clear regulatory framework for stablecoins, requiring issuers to register with the Financial Services Agency (FSA) and limiting issuance to licensed money transmitters, banking institutions, and trusts.
Stablecoins must be backed by fiat currency reserves, and algorithmic stablecoins, like the failed TerraUSD, are under scrutiny due to their inherent risks.
🤝@Nomura Holdings and @GMO_Group have partnered to issue Japanese yen $JPY and $USD stablecoins in Japan.
— Satoshi Talks (@Satoshi_Talks) May 27, 2024
This partnership, which includes Laser Digital Holdings, will focus on traditional #stablecoin issuance, regulatory compliance, and stablecoins-as-a-service. Nomura… pic.twitter.com/28qnq0godj
TerraUSD’s collapse in May 2022 highlighted the dangers of stablecoins not backed by actual fiat reserves, leading to significant investor losses.
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