Anchorage Digital Offers Japanese Yen Stablecoin Approved by New York’s DFS 

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Anchorage Digital Offers Japanese Yen Stablecoin Approved by New York’s DFS 

On Tuesday, Anchorage Digital, a regulated crypto custody platform, said it is now offering a Japanese Yen Stablecoin (JPY). This adds to the company’s Euro and USD custodial offerings, which have various use cases ranging from payroll to payment in Japan. 

Anchorage Digital’s JPY Stablecoin 

The company’s custodianship of the GYEN stablecoin is due to a collaboration with Trust Company. Trust Company is the subsidiary of GMO Internet Group, a Japanese-based internet conglomerate, and financial services firm.

Meanwhile, New York’s DFS (Department of Financial Services) has approved the Japanese Yen stablecoin. Also, the company reported that the stablecoin is 1:1 backed by assets deposited in FDIC-insured banks.

Recently, stablecoins such as Circle’s USDC and Tether’s USDT have become a major part of the crypto sector. They have become catalysts for modern trading concepts such as DeFi. 

However, non-crypto companies are opening up to the potential of a stablecoin. Diogo Mónica, the co-founder of Anchorage, said the use cases of these stablecoins are wider when they are regulated and offered in local currencies.

Mónica added that these assets have numerous uses, such as payroll and remittances. This makes funds readily available and accessible to users and businesses. He said a cryptocurrency is just a tool that makes this process cheap.

Investors Now Wary Of Crypto Platforms

According to him, the latest fall of the Terra ecosystem, together with its stablecoin, the terraUSD (UST), has caused panic in the crypto industry. As a result of the collapse, several high-profile crypto-base firms have gone bankrupt.

Therefore, investors are looking for secure and safer assets to invest in. The co-founder noted that in 2021, crypto firms going bankrupt was not a huge topic. Hence, no one really considered what would happen to the assets if such a situation arose.

However, this has been a regular debate in 2022 following the recent crisis. Mónica assured investors that the firm is regulated and hence their funds are safe.

Earlier in June, the crypto custody giant announced its intention to introduce the Ethereum staking feature for institutions. The San Francisco-based regulated crypto bank said it would offer Ethereum holders the chance to receive rewards for securing the Ethereum blockchain after the upcoming Merge.

Anchorage To Assist Institutional Investors With Ethereum Staking 

The company’s report was due to the move of the Ethereum community to transition from the PoW consensus mechanism to the PoS. Besides, reports state that the PoS would make the Ethereum blockchain energy efficient and much faster. 

Staking is the process where crypto holders assist in the validation of new crypto transactions on a PoS blockchain. Participants who allocate part of their Ethereum have the chance to authenticate transactions and earn a reward in exchange. 

Anchorage has offered to supervise the process for colleges interested in participating. Mónica told CoinDesk in June that this is a huge opportunity for institutional investors as they were uncomfortable with staking before now.

Ifeanyi Egede

Ifeanyi Egede is an experienced and versatile writer and researcher. He has keen interest in blockchain technology, cryptocurrencies, NFTs, Web3, metaverse, fintech and emerging technologies. He has tons of published works both online and in the print media. He has close to a decade of writing experience. When he is not writing, he spends time with his lovely wife and kids.