The New York State Department of Financial Services (DFS) has granted a charter under New York Banking Law to GMO-Z.com Trust Company Inc., to operate as a limited liability trust company. Thanks to the DFS approval, GMO is authorized to issue, administer, and redeem Japanese Yen and U.S. Dollar-pegged stablecoins in New York.

Including the charter granted to GMO, to date DFS has approved 27 charters and licenses for companies engaged in virtual currency business activity.

Ken Nakamura, President and CEO of GMO-Z.com Trust Company, Inc, commented:

“We’re breaking ground with our move to issue the first regulated JPY-pegged stablecoin, which many see as a safe haven asset. But we are also pioneers and innovators in this space who envision building new applications of blockchain technology that transform our relationship with traditional financial services.”

DFS commenced licensing firms engaged in virtual currency businesses activity in 2015 and under the leadership of Superintendent Lacewell, DFS has revised the Department’s regulatory approach. This includes streamlining the process for companies to adopt new coins through a self-certification framework and a coins Greenlist, making use of the Department’s conditional licensing authority, and providing new clarity about DFS processes and expectations to applicants and licensed entities.