Nomura, Laser Digital, and GMO Internet Partner to Launch Japanese Stablecoins

Nomura, along with its digital asset subsidiary Laser Digital, has declared a partnership with the Japan-based GMO Internet Group to investigate the potential of stablecoin issuance within the nation. This joint venture seeks to establish, redeem, and facilitate the circulation of stablecoins pegged to the Japanese yen and the U.S. dollar.

GMO-Z is distinguished by its possession of a Trust Charter from the New York State Department of Financial Services (NYDFS), a license also held by renowned stablecoin issuers like Paxos and Gemini Trust. This authorization allows GMO-Z to issue GYEN and ZUSD stablecoins across major blockchain platforms, including Ethereum, Solana, and Stellar.

"This project could significantly boost digital asset accessibility and innovation within Japan's financial landscape," stated Kentaro Okuda, President and Group CEO of Nomura Holdings.

Japan is a leader in tokenization, showing considerable advancements in digital assets and tokenized securities. For instance, Japan is home to a secondary market for tokenized securities, ODX START, and has experienced a variety of institutional issuances of tokenized real estate. With no wholesale central bank digital currency (CBDC) available, stablecoins are essential in enabling on-chain financial transactions.

Japan's stablecoin market is heating up with the introduction of new legislation last year. GMO and JPYC are key stablecoin issuers in the country. JPYC is forging partnerships with other stablecoin projects, such as Progmat Coin, which enjoys the backing of leading banks like MUFG, SMBC, Mizuho, and Sumitomo Mitsui Trust.

Japanese legislation recognizes three categories of stablecoins:

• Trust Company-Issued Stablecoins: Endorsed by Progmat Coin and MUFG.
• Bank-Issued Stablecoins: Essentially, these are deposit tokens.
• Money Services License-Issued Stablecoins: JPYC is reportedly seeking this classification.

JPYC, while a nascent entity, contrasts with GMO Internet, a veteran and publicly traded firm that, alongside GMO Financial, controls half of GMO Aozora Net Bank. This institution is set to pioneer a use case for DCJPY, a tokenized deposit system initiated by DeCurret. DCJPY has its roots in the Digital Currency Forum, which includes over 100 Japanese organizations and businesses, such as Nomura.

The collaboration among Nomura, Laser Digital, and GMO Internet marks a pivotal advancement in Japan's digital asset domain, with the promise to spur innovation and expand the reach of digital financial services.