On December 29, 2020, GMO Internet Inc. announced that it has won approval from the New York Department of Financial Services to establish a limited purpose trust company, GMO-Z.com Trust Company, Inc., and issue the world's first regulated Japanese Yen-backed stablecoin, a virtual currency token whose value will remain pegged to the Yen.
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 approval allows the company to launch both Japanese Yen-backed stablecoin (GYEN) and US Dollar-backed stablecoin (ZUSD). Currently, no other regulated stablecoins are pegged to the Japanese Yen. Both GYEN and ZUSD can be purchased and redeemed directly from GMO Trust, and GMO Trust has also partnered with digital asset exchanges that operate globally to enhance the accessibility and liquidity of the tokens.
The WilmerHale team advising GMO Internet includes Robert Finkel, Franca Harris Gutierrez, Zachary Goldman, Richard Andersen, Lillian Brown, Brian Mahanna, Tiffany Smith, Arianna Evers, Howell Ma, Michael Romais, Kenneth Brady and Ariel Dobkin.
WilmerHale’s FinTech and virtual currency practices involve a multi-disciplinary team of lawyers that leverages deep and broad experience across practices. Our team advises clients on a wide range of FinTech-related matters and issues, including obtaining licenses to issue or exchange virtual currencies; general corporate matters; M&A and joint venture transactions; FinTech-enabled services, including mobile applications and outsourcing; capital markets and other financings, including venture capital investments; regulatory and compliance matters; establishing anti-money laundering and sanctions compliance programs; data security and privacy; vendor management; and intellectual property and patent litigation.