New York: Licence for first yen stablecoin operator in USA
The Japanese company GMO is now allowed to offer stablecoins pegged to the yen and the US dollar in the US state of New York.
New York has granted a stablecoin pegged to the Japanese yen its first licence to operate in the United States.
According to an announcement on Tuesday, New York’s financial services regulator NYDFS has granted Japanese firm GMO-Z.com a licence to operate stablecoins in New York that are pegged to the US dollar and yen.
Given that New York is considered a global centre, the NYDFS is the most prominent state financial regulator in the United States and also one of the most aggressive. A licence to operate in New York often opens the doors for a Bitcoin Pro company to operate in the rest of the country.
CMO’s articles of association restrict the company’s
The CMO charter is more like a limited liability trust than a full-service bank. The main difference is that the latter has the authority to manage deposits. A stablecoin operator typically needs the authority to hold reserves of the asset in question. However, the CMO’s articles of association restrict the company’s rights to hold other types of deposits that are not central to the „issuance, management and redemption“ of its stablecoins.
The granting of such permissions is also a point of contention between state regulators such as the NYDFS and national banking regulators in the United States.
CMO President and CEO Ken Nakamura commented, „We are breaking new ground with our plan to issue the first regulated stablecoin pegged to the JPY. This is considered by many to be a safe haven.“
The NYDFS recently made changes to its famous BitLicense. Among them is a new rule that matches newly licensed firms with existing licensees. The first conditional BitLicense went to PayPal, which was able to launch its new crypto services in the autumn with the help of long-time licensee Paxos.