“GMO Internet Group will utilize the blockchain technology know-hows we have accumulated so far and will look to further expand the possibilities of blockchain technology through the partnership.”
GMO Internet Group has partnered with Klaytn Foundation to explore blockchain business synergies as its latest move is a continuation of the conglomerate’s global expansion in internet infrastructure, financial services, e-commerce, payments, and cryptocurrency business segments.
The Tokyo-based group and owner of FX trading platform and brokerage GMO Click also operates a payment gateway, crypto exchanges, and is the issuer of stablecoins GYEN and ZUSD which are pegged to JPY and USD respectively.
Klaytn, a blockchain initiative by the Kakao Group, is a service-centric blockchain platform that aims to provide an intuitive development environment and user-friendly experiences for blockchain.
GMO partners with Klaytn Foundation ahead of mass adoption
The partnership with Klaytn Foundation, a non-profit entity in Singapore that supports the Klaytn blockchain ecosystem by accelerating its sustainable global growth, will bring GMO closer to that network namely to test the feasibility of blockchain businesses in preparation for mass adoption.
The foundation manages a US$500 million growth fund that supports ecosystem players through various capital deployments.
Ken Nakamura, chair of cryptocurrency business committee at GMO Internet Group, commented: “GMO Internet Group will utilize the blockchain technology know-hows we have accumulated so far and will look to further expand the possibilities of blockchain technology through the partnership.”
David Shin, head of global adoption at Klaytn Foundation, said: “The partnership of the largest internet company in Japan with one of the largest tech companies in Korea is one that encompasses a shared commitment to building new and open digital economies, and offering a digital corridor to both marketplaces through the Klaytn blockchain.”
Focused on GameFi and creative content, Klaytn is a public blockchain officially launched in June 2019 that has become leading platform in South Korea and is now undergoing global business expansion.
GMO goes deep into crypto
Last year, GMO made the headlines for partnering with Wyre to ensure that the stablecoin of GMO.Z which is pegged to the Japanese Yen is available across all the platforms which includes payments, crypto exchanges, wallets, and foreign exchange solutions. Wyre provides a stable platform for developers to integrate into, using their simple API.
We have covered the rapid developments happening in the GYEN space and the big push that is being given to GYEN and ZUSD by the GMO-Z group. Being one of the largest internet and trading company groups in Japan, they hold a lot of clout in the trading industry and with their crypto stablecoin division being regulated and licensed by the New York Department of Financial Services, they are able to expand with ease.
They are trying to position GYEN as a payment method of choice and the recent tie-up with INX and Nexus Markets is an added proof of this along with the partnership with Wyre that has been announced today. All these developments have happened with a span of a month which shows the aggressive push that is being given to GYEN and ZUSD by the company and the market that is currently available for stablecoins. These are now viewed as real alternatives to fiat which can serve the cross-border payment industry in the long term and this is the reason why we are seeing various stablecoins being introduced and pushed.
Those that are regulated and licensed have a better chance at success in the long term but the competition for dollar-pegged stablecoins at this time seems to be between USDT and USDC with ZUSD also joining the fray now while GYEN stands as the sole stablecoin as far as being Yen-pegged is concerned.