A Japanese yen-pegged stablecoin is under plan by the founding partners of the world’s largest blockchain fund backed by the government of the Chinese city Hangzhou, as reported by South China Morning Post.
The stablecoin is expected to be rolled out as early as the end of this year or early 2019, and stablecoins anchored to the Hong Kong dollar and Australian dollar will also be explored by the same company in the future.
The project is initiated by Grandshores Technology Group (formerly SHIS LTD), a Hong Kong-listed blockchain investor chaired by Yao Yongjie, who is also a founding partner of the $1.6 billion Hangzhou Xiong’An (Grandshores) Blockchain Fund and an early investor into world’s second largest bitcoin miner manufacturer Canaan (Avalon).
The company said that it’s planning to raise HK$100 million (roughly US$13 million) to help finance the project. Its chairman Yao said the company would tap qualified investors outside of China to raise funds denominated in tether, a U.S.-dollar backed stablecoin.
Stablecoin is a cryptocurrency pegged to a stable asset such as gold or fiat currencies like the US dollar. It has been recently hitting the crypto headlines with Winklevoss Brothers being approved to run GeminiUSD as the next big stablecoin after TetherUSD.
Many cryptocurrency exchanges have already traded Bitcoin and other cryptocurrencies such as Ether and EOS against tether. Grandshores Technology’s yen stablecoin could provide an alternative that could be traded on such exchanges.
According to Yao, the founding partners of the Hangzhou Grandshores Fund are currently working with a mid-tier Japanese bank in creating the yen-backed stablecoin, however he refused to disclose the name of the bank.
Blockchain will become the mainstream technology in the next three to five years,” said Yao, who is also a part-time lecturer at Zhejiang University in Hangzhou. “We are entering the next stage of blockchain evolution, a stage which is akin to when computer operating system was transiting from MS-DOS [disk operating system] to MS-Windows.”
This blockchain believer has made active investments in the blockchain space ranging from crypto mining to startup incubation, and his newly-rebranded company pivot to stablecoin investment is his latest effort.
*Edited based on an article from 8btc