GMO-Z.com Trust Company, Inc. (“GMO Trust”), the New York-based, regulated stablecoin subsidiary of Japanese Internet conglomerate GMO Internet Group (“GMO”), announced a partnership with Shift Markets, one of the leading technology service providers in cryptocurrency and Forex (“FX”) markets. The partnership is designed to integrate the world’s first regulated Japanese Yen stablecoin, ticker symbol: GYEN, and a USD stablecoin issued by GMO Trust (ticker symbol ZUSD) onto Shift Market’s global network of exchanges linked through their liquidity provider, NEXUS.
Unlimited Currency Pair Options
Shift Market’s liquidity arm, NEXUS, an Electronic Communication Network (“ECN”), enables GMO Trust’s stablecoins to be available to NEXUS’ 70+ exchange and buy-side institutional clients. Given Shift Markets’ long track record of servicing both digital asset and FX firms, NEXUS has the capability and demand to support a multitude of fiat currency pairs leveraging GYEN and ZUSD. This structure helps to further blend the digital asset space with FX trading markets, accessing a new segment of traders while also providing new capabilities, including hedging, arbitrage, trading and settlement. This partnership becomes particularly relevant as additional use cases develop, especially given the fact that the group operates the largest retail forex broker, GMO CLICK Securities, which consistently has a large FX trading volume globally. In addition, Shift Markets will serve as a preferred institutional lender of the stablecoins on its NEXUS network.
Expanding the Horizons of Digital Fiat
In a global first, GMO Trust has secured a Limited Purpose Trust license, issued by the New York Department of Financial Services (NYDFS) for the distribution of a Yen backed stablecoin. With a digital version of Yen, GMO Trust is providing unprecedented potential for international access to the fiat. As a technical service provider for the industry, Shift Market’s infrastructure software provides white-label solutions for trading, payments, brokerage, token issuance and even compliance. Both firms recognize the potential for additional areas of collaboration across a variety of business lines, and are excited by the partnership and the promise of digital fiat.
When asked to describe the synergies of the partnership, Shift Markets CEO, Ian McAfee expressed: “Shift Markets is furthering its mission to drive financial-grade digital assets into the fabric of the digital assets and FX space, with regulated stablecoins attracting tier one financial firms into the markets. GMO’s significant presence in both traditional FX and digital asset industries, combined with our network of exchange partners and ability to pair these stablecoins against any major currency, opens up a new realm of possibilities for digital fiat.”
“Partnering with an industry leading technology firm like Shift Markets enables GMO Trust to offer a fully-regulated digital version of JPY and USD to Shift Markets’ global network of exchange and institutional partners,” said Kurt Bierbower, GMO Trust’s SVP of Business Development. “Shift Markets’ cryptocurrency and FX clients will find significant value with the capability to trade and settle near instantaneously through blockchain rails as compared to traditional fiat networks.”