Nomura and GMO Internet Explore Stablecoin Issuance in Japan

Nomura, a global financial services group, has entered into a collaboration with its digital assets subsidiary Laser Digital and GMO Internet, a major internet conglomerate in Japan, to explore the potential issuance of dollar and yen stablecoins in Japan. This collaboration aims to offer a stablecoin-as-a-service solution within the Japanese market, focusing on enhancing digital asset accessibility and innovation.

GMO Internet, which is the parent company of GMO-Z that issues New York-regulated stablecoins such as GYEN and ZUSD, is recognized for holding a New York State (NYDFS) Trust Charter. This license is also held by other notable stablecoin issuers like Paxos and Gemini Trust. GMO-Z’s stablecoins are accessible on several blockchains including Ethereum, Solana, and Stellar.

Kentaro Okuda, President and Group CEO of Nomura Holdings, highlighted the project’s potential to significantly improve the digital asset ecosystem in Japan. The country has shown a faster adoption rate of tokenization compared to other regions, with initiatives such as a secondary market for tokenized securities and institutional issuances of tokenized real estate.

The partnership occurs in a context where Japan has introduced new stablecoin laws, spurring various organizations to announce their stablecoin initiatives. GMO and JPYC are among the existing Japanese stablecoin issuers, with JPYC forming alliances with other stablecoin projects such as Progmat Coin, supported by MUFG and other major banks.

Japanese legislation categorizes stablecoins into three types: those issued by a trust company, those issued by banks as deposit tokens, and those issued by holders of a funds transfer license. GMO Internet, a listed company, alongside GMO Financial, plans to leverage its half ownership of GMO Aozora Net Bank to launch a use case under DCJPY, a tokenized deposit solution, marking a significant step in Japan’s digital currency landscape. This initiative also involves Nomura among over 100 Japanese institutions participating in the Digital Currency Forum, indicating a broad industry effort towards embracing digital currencies and blockchain technology in Japan.