Japanese trading house Mitsui is reportedly planning to launch a gold-pegged cryptocurrency, local news agency Nikkei Asia reported on Friday.
Mitsui’s new digital currency, dubbed ZipangCoin (ZPG), will reportedly be released as early as February and will be available to retail investors through cryptocurrency exchanges.
The stablecoin will be pegged to yen-denominated gold prices by Mitsui on the London Metal Exchange, with one ZPG equivalent to one gram of gold and guaranteed by Sumitomo Mitsui Banking.
According to the report, the new gold stablecoin will be initially offered through Mitsui’s own cryptocurrency exchange and will then be available on other exchanges. The trading house launched a cryptocurrency trading platform with Seven Bank Japan by registering the exchange with the local Kanto Financial Bureau with the approval of the Japan Financial Services Agency (FSA).
The new gold-based digital currency is designed to provide new opportunities to reduce financial risks and hedge against inflation. In addition to offering new investment opportunities, Mitsui also reportedly plans to allow the use of ZPG for smartphone payments in stores and supermarkets, as well as bill payments.
Related: Mark Zuckerberg’s Diem Stablecoin Project Officially Closes
Mitsui is not the only Japanese company involved in the development of stablecoins. In November 2021, a consortium of 74 companies including Mitsubishi UFJ, Mizuho Financial and Sumitomo Mitsui Financial announced it was testing DCJPY, a yen-based bank-deposit-backed digital currency.
According to the Nikkei, Mitsui hopes to launch a retail-focused ZPG ahead of DCJPY.
Japanese trading house Mitsui is reportedly planning to launch a gold-pegged cryptocurrency, local news agency Nikkei Asia reported on Friday.
Mitsui’s new digital currency, dubbed ZipangCoin (ZPG), will reportedly be released as early as February and will be available to retail investors through cryptocurrency exchanges.
The stablecoin will be pegged to yen-denominated gold prices by Mitsui on the London Metal Exchange, with one ZPG equivalent to one gram of gold and guaranteed by Sumitomo Mitsui Banking.
According to the report, the new gold stablecoin will be initially offered through Mitsui’s own cryptocurrency exchange and will then be available on other exchanges. The trading house launched a cryptocurrency trading platform with Seven Bank Japan by registering the exchange with the local Kanto Financial Bureau with the approval of the Japan Financial Services Agency (FSA).
The new gold-based digital currency is designed to provide new opportunities to reduce financial risks and hedge against inflation. In addition to offering new investment opportunities, Mitsui also reportedly plans to allow the use of ZPG for smartphone payments in stores and supermarkets, as well as bill payments.
Related: Mark Zuckerberg’s Diem Stablecoin Project Officially Closes
Mitsui is not the only Japanese company involved in the development of stablecoins. In November 2021, a consortium of 74 companies including Mitsubishi UFJ, Mizuho Financial and Sumitomo Mitsui Financial announced it was testing DCJPY, a yen-based bank-deposit-backed digital currency.
According to the Nikkei, Mitsui hopes to launch a retail-focused ZPG ahead of DCJPY.
