financial

Nomura Holdings and GMO Internet Group Partner to Issue Stablecoins in Japan

The Big Whale

28 May 2024 — 1 min read

Nomura Holdings and GMO Internet Group partner for stablecoin issuance in Japan.
Partnership includes Laser Digital Holdings for trading solutions and asset management.
Focus on traditional stablecoin issuance, regulatory compliance, and stablecoins-as-a-service.
Japan passed legislation in 2022 to regulate stablecoins as non-securities.
Only licensed entities can issue stablecoins in Japan, pegged to fiat currencies.
Japan's FSA warns against algorithmic stablecoins after TerraUSD collapse.

Summary :
Nomura Holdings and the GMO Internet Group have formed a partnership to issue Japanese yen and United States dollar stablecoins in Japan. The partnership will also involve Laser Digital Holdings, a subsidiary of Nomura Holdings that specializes in trading solutions and asset management for digital assets. The focus of the partnership will be on traditional stablecoin issuance, regulatory compliance, and stablecoins-as-a-service. Nomura Holdings CEO Kentaro Okuda expressed his belief that stablecoins will play a significant role in financial markets. The partnership aims to explore the mechanisms of a JPY/USD stablecoin business in Japan, with the potential to enhance digital asset accessibility and innovation in the Japanese financial landscape. In 2022, Japan passed legislation to establish a regulatory framework for stablecoins, requiring issuers to register with the Financial Services Agency (FSA). Currently, only licensed money transmitters, banking institutions, and trusts can issue stablecoins in Japan, and the value of the stablecoins must be pegged to a fiat currency like the yen or the U.S. dollar. The partnership's announcement comes as algorithmic stablecoins, such as TerraUSD, have faced scrutiny from Japan's FSA due to concerns about their use and risks. TerraUSD experienced a collapse in May 2022 when it failed to maintain its 1:1 U.S. dollar peg, leading to a significant loss of value for investors. The FSA has expressed a preference for stablecoins backed by actual fiat reserves.

Sources :

- CoinTelegraph

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