- The stablecoin exploration is expected to increase the uptake of digital assets in Japan.
- Japan has favored the regulatory route in stablecoin exploration.
Banking and investment giant Nomura Holdings has teamed up with GMO Internet Group to explore the offerings of fiat-backed stablecoins in Japan. The two companies will focus on the issuance and circulation of the Japanese yen and the US dollar-pegged stablecoins. Other areas are regulatory compliance and stablecoins-as-a-service.
In a Monday announcement, Nomura Holdings president and Group CEO Kentaro Okuda lauded the potential of stablecoins in enhancing digital access and innovation in Japan. The partnership also includes Laser Digital Holdings, a trading solutions and digital asset management enterprise for Nomura Holdings. Laser Digital’s Executive Chairman commented:
“We’re excited to explore this project and the ‘stablecoin-as-a-service’ solution. As the digital asset landscape evolves, the development of a stablecoin for use in the Japanese market will be key to expanding the accessibility and adoption of digital assets in Japan and beyond.”
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Expanding The Japanese Stablecoin Market
The partnership comes when Japan has been at the forefront of enhancing stablecoin growth in the country. The government has preferred the regulatory route, with the 2022 bill classifying the asset class as non-securities, needing FSA registration.
Under Japan’s existing laws, only licensed financial institutions and trusts can issue stablecoins. The stablecoins must be pegged to an underlying currency such as the yen or US dollar.
Under the latest Nomura partnership, users will benefit from regulatory compliance, in addition to blockchain integration and backend transactions. The service also supports firms looking to issue stablecoins in Japan.