Nomura and GMO Partner for Stablecoin Research in Japan

Nomura Holdings, a major player in financial services across 30 nations, and the GMO Internet Group have teamed up to issue Japanese yen (JPY) and U.S. dollar (USD) stablecoins in Japan. Their collaborative efforts will also engage Laser Digital Holdings, a Nomura subsidiary specializing in trading and digital asset management solutions. This partnership will center around the traditional issuance of stablecoins, ensuring regulatory adherence, and introducing stablecoins-as-a-service.

Kentaro Okuda, CEO of Nomura Holdings, expressed the importance of this initiative in a press statement. He emphasized that stablecoins are set to become integral to financial markets. In his view, the collaboration aims to delve into the mechanisms involved in issuing, redeeming, and circulating JPY/USD stablecoins within Japan. Okuda believes this endeavor holds significant promise for boosting the accessibility and innovation of digital assets in Japan’s financial sphere.

In 2022, the Japanese government took significant steps to establish a structured regulatory environment for stablecoins. The legislation was particularly noteworthy as it designated stablecoins as non-securities. It also mandated that all stablecoin issuers must register with Japan’s Financial Services Agency (FSA) before releasing their tokenized fiat equivalents.

According to the current laws, only entities like licensed money transmitters, banking institutions, and trusts are authorized to issue stablecoins in Japan. The value of these stablecoins must be anchored to an underlying fiat currency, such as the Japanese yen or the U.S. dollar. The FSA has shown particular concern regarding algorithmic stablecoins, such as the ill-fated TerraUSD.

The Japanese financial regulator has issued warnings concerning the potential dangers and usage of algorithmic stablecoins. They have shown a preference for stablecoins that are backed by real fiat reserves. The collapse of TerraUSD in May 2022 is a prime example of such vulnerabilities. As confidence in TerraUSD waned, the algorithm that was supposed to maintain its 1:1 peg with the U.S. dollar failed miserably.

The downfall of TerraUSD began with its steady decoupling from the dollar peg. This quickly escalated into a catastrophic price collapse. The absence of concrete fiat reserves to support the algorithmic stablecoin during periods of extreme market volatility or unforeseen events contributed significantly to the implosion. Investors saw billions drain away as the stablecoin’s value plummeted.

The new initiative by Nomura Holdings and the GMO Internet Group appears to be a strategic move to steer clear of the pitfalls exposed by algorithmic stablecoins. By focusing on stablecoins backed by actual fiat reserves, they aim to offer a more secure and reliable digital asset.

This venture could serve to restore faith in digital assets in Japan. By ensuring compliance with regulatory frameworks and leveraging their expertise in financial services and digital solutions, Nomura Holdings and GMO Internet Group have the opportunity to set a precedent for stablecoin issuance in Japan.

Junia Hedrick

Junia Hedrick

31 thoughts on “Nomura and GMO Partner for Stablecoin Research in Japan

  1. Proud of Nomura and GMO for prioritizing stability and security in stablecoin issuance!

  2. Comprehensive and forward-thinking approach! Nomura and GMO are undoubtedly leaders in this space.

  3. This move by Nomura is just baffling. Weve seen how bad these stablecoin projects can go. Have they forgotten TerraUSD already?

  4. No thanks! I dont trust these stablecoins, even if they are backed by fiat reserves. Too many risks involved.

  5. Hats off to Nomura Holdings and GMO Internet Group! Their focus on regulatory adherence is commendable.

  6. Cheers to Nomura and GMO for their pioneering collaboration for stablecoins in Japan! 🌟💡🚀

  7. Fantastic initiative! This partnership will undoubtedly enhance Japans digital asset sphere.

  8. Excited to follow this journey! Nomura and GMO are truly ahead in the game.

  9. So impressed with this initiative! Nomura and GMO are setting a new precedent in the industry.

  10. Here’s to the future of finance in Japan! Thanks to Nomura and GMO, were in for exciting times.

  11. This initiative is a game-changer! Looking forward to seeing how Nomura and GMO revolutionize stablecoins in Japan.

  12. Nomura and GMO are truly setting new standards in digital finance. Looking forward to seeing this unfold! 👏🚀💴

  13. I get nervous when traditional finance companies venture into the volatile world of digital assets. Nomura and GMO should stick to what they know.

  14. Nomura Holdings teaming up with GMO Internet Group for stablecoins? I dont trust this at all. Too many risky moves in crypto lately.

  15. Excited for the stablecoin future in Japan! Nomura and GMOs initiative is exactly what the market needs.

  16. Japanese law might support this, but I can’t help but feel uneasy. Stablecoins have proven to be unreliable before.

  17. This collaboration is exactly what Japans financial market needs. Well done, Nomura and GMO!

  18. This venture is a brilliant move! Stablecoins are indeed integral to the financial markets. 💱🔗✨

  19. Great to see such reputable names ensuring regulatory adherence with this project. Confident this will boost trust in digital assets! 👍🇯🇵💲

  20. So glad to see Nomura and GMO prioritizing secure, fiat-backed stablecoins. This is the way forward! 💪💴✨

  21. Im really disappointed in Nomura Holdings getting involved in this. Do we really need more stablecoins? Feels like another way to complicate things.

  22. This partnership is bound to reshape Japan’s financial landscape. Nomura and GMO are true innovators! ✨🌟💰

  23. Kentaro Okuda’s vision for stablecoins is spot on! This initiative could transform financial markets in Japan.

  24. The future is bright for digital assets in Japan with Nomura and GMO at the helm! 🌟📈👏

  25. Excited to see Nomura and GMO digitalize Japan’s financial sphere. This initiative is paving the way for the future! 🚀💡

  26. Stablecoins backed by fiat might avoid some issues, but they come with their own set of problems. Better to stay away from this uncertainty.

  27. Are you kidding me, Nomura? Digital assets might be the future, but stablecoins are so unstable. Why even bother?

  28. Amazing news for digital assets in Japan! Nomura and GMO are taking the right steps.

  29. Kentaro Okudas insights show true leadership. Stablecoins will indeed be crucial in financial markets!

  30. This partnership sounds promising! Nomura and GMO are definitely going to lead the charge in Japans digital asset market.

  31. Nomura and GMO’s collaboration for stablecoins is a significant step towards financial stability and innovation in Japan! 🌐💡💴

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