The founders of a $1.45 billion investment firm, as well as a dedicated blockchain fund, Grandshores Technology Group are now teaming up to launch a new cryptocurrency whose value is going to be pegged to the yen.
Grandshores Technology Group working with a Japanese bank to create the unnamed stablecoin
The South China Morning Post has published that Grandshores Technology Group, which is a Hong Kong-based blockchain investment firm, is now raising HK$100 million or US$12.7 million to bootstrap new project. The purpose of this new project is to provide traders, as well as some other users of cryptocurrency with a yen “stablecoin,” which will have a value immune to price volatility on the broader crypto markets.
The founding partner of Grandshores Technology, named Yongjie Yao, is also the founder of the $1.45 billion investment firm known as Hangzhou Grandshores Fund, which has received backing from the Hangzhou government. The founder stated that the partners of his fund are now working with a Japanese bank, in order to create the as-yet-unnamed stablecoin, which should be launched in late 2018, or early 2019.
Crypto traders and exchanges are the potential takers of the stablecoin
He said that they believe crypto traders, as well as exchanges are going to be potential takers of it, adding that the Grandshores plans to develop an entire suite of fiat-pegged stablecoins, starting next with the Hong Kong dollar and Australian dollar.
Interestingly, Grandshores Technology also said that the financing round of the yen-pegged token is going to be denominated in the Tether (USDT), which is the controversial USD-backed stablecoin which serves as a proxy for physical greenbacks on a lot of crypto exchanges.
Speaking in more details about the developments in the blockchain space, Yao also said that he expects blockchain to be mainstream technology in the following half-decade.
According to him, blockchain is going to become the mainstream technology in the following three to five years. He said that the world is entering the next stage of blockchain evolution, a phase which is akin to when computer operating systems were transiting from MS-DOS or disk operating system to MS-Windows.
Investors see the proliferation of stablecoins as an essential step
Many investors and people know the spread of trustworthy stablecoins as a significant step in the process, as it is going to provide users with exposure to some of the chief benefits of crypto technology, such as rapid cross-border settlement, without the price volatility. Also, there are some trade-offs, which include the need for stable coin issuers to adhere to KYC/AML policies, as well as in some cases to transaction censored, but institutions and some other highly-regulated firms may have the desire to make this exchange.
Earlier in September, the two New York-based charter companies, Gemini, as well as Paxos, launched USD-pegged stablecoins which both firms touted as the first-ever “regulated” stablecoins.