What is GYEN?
Gyen (GYEN) is a stablecoin that is pegged to the Japanese yen (YEN) and is securely stored in FDIC-insured trustee bank accounts. The aim of this digital asset is to reduce price volatility by tying the value of the traditional currency to the stablecoin in a 1:1 ratio. As a result, GYEN seeks to offer a reliable source of value, similar to the Japanese yen, which is backed by JPY reserves.
The GMO Trust, a New York-based trust, issues GYEN with a mission to bridge traditional finance with the digital era by leveraging blockchain technology. The trust aims to create a stablecoin that is free from volatility and can be used as a financial transfer solution. GMO Internet Group (GMO) is a leading provider of internet services worldwide, and GMO Trust issued the world's first regulated JPY stablecoin.
Moreover, GYEN aims to address concerns about unregulated stablecoins and those that don't use traditional currencies as backing. The GYEN stablecoin offers a substantial leap in digital assets by utilizing the existing financial system's infrastructure, regulatory control, and currency stability while functioning at the speed and efficiency of the internet.
The GMO whitepaper highlights the volatility of digital assets, and GYEN seeks to facilitate near-instant hedging of the digital asset to a traditional currency. The token also functions as a stablecoin, making the trading and redemption of conventional and digital assets more accessible. As more asset categories move to blockchain, GYEN seeks to cater to more users.
GYEN employs the ERC20 standard to eliminate human error. ERC20, a smart contract of the Ethereum blockchain, operates under a set of rules in a computer-programmed sequence. Smart contracts are similar to regular contracts, but they run in protocols on a blockchain. As a result, smart contracts enable the execution of trustworthy transactions without the involvement of a third party.
GYEN transactions happen on the Ethereum network, and the GMO Trust acts as the issuance and redemption mechanism. This blockchain seeks to publicly view account balances, token supply, and on-chain operations for the GYEN token.
GYEN is referred to as "digital JPY," and users can receive and redeem GYEN on a simple and straightforward interface provided by the GMO Trust. After depositing the corresponding traditional currency as collateral to their platform, users can receive GYEN tokens. The precise quantity of GYEN tokens is released at the 1:1 exchange rate after validating the deposit that the user makes. The redemption procedure is also performed in a similar manner, enabling users to redeem tokens at a conversion rate of 1:1 for validated deposits.
GMO-Z.com Trust company launched the GYEN token in 2020. This trust is a subsidiary of IT and financial conglomerate GMO Internet Group of Japan, and the GYEN team includes Ken Nakamura (CEO), Tomohisa Onishi (COO), and others. In 2021, the GMO Trust released the official whitepaper of its stablecoins, GYEN and ZUSD.
In conclusion, GYEN is a stablecoin that aims to provide a reliable source of value by tying the value of the traditional currency to the digital asset in a 1:1 ratio. The GMO Trust issues GYEN, which seeks to incorporate traditional finance into the digital era using blockchain technology. As a stablecoin, GYEN seeks to address concerns about unregulated stablecoins and those that don't use traditional currencies as backing. With its use of the ERC20 standard and smart contracts, GYEN enables the execution of trustworthy transactions without the involvement of a third party.
The investment information, comments, and recommendations provided here do not fall under the scope of investment consulting. Therefore, making an investment decision based solely on the information and comments provided here may not yield results that meet your expectations.
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