Mitsui, one of Japan’s largest financial conglomerates, reportedly plans to launch a stablecoin that maintains parity with gold soon.
According to information revealed by Nikkei Asia on Friday, finance giant Mitsui reportedly aims to launch a gold-backed cryptocurrency.
Called ZipangCoin (ZPG), Mitsui’s new digital currency could be offered as early as February to savers.
The price of this stablecoin would replicate that of gold, denominated in yen, based on the listing of the London Metal Exchange. One ZPG would equal one gram of gold, and Sumitomo Mitsui Banking would guarantee its value.
According to information from Nikkei Asia, this new gold-backed stablecoin would initially be offered on Mitsui’s crypto-exchange before being available on other platforms. After obtaining the green light from the Japan Financial Services Agency, the financial house launched its exchange service in collaboration with Seven Bank Japan.
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This new currency should offer savers new opportunities to hedge against inflation while limiting, when they wish, their exposure to the volatility of cryptocurrencies. Mitsui should also allow ZPG holders to make payments to merchants with a smartphone, but also to pay bills.
Mitsui is one of many Japanese companies to take an interest in stablecoins. In November 2021, a consortium of 74 companies, including Mitsubishi UFJ, Mizuho Financial and Sumitomo Mitsui Financial, announced that they were working on creating the DCJPY. The yen would back this digital currency.
