Manatt Financial Services partner Rebecca Rettig successfully represented GMO-Z.com Trust Company Inc. before the New York State Department of Financial Services (DFS) in its application for a trust charter to operate as a limited liability trust company under New York Banking Law. With this ground-breaking DFS approval, GMO is now authorized to issue, administer and redeem Japanese Yen (JPY) and U.S. Dollar-pegged stablecoins in New York. GMO’s Yen-backed stablecoin is the first-of-its-kind to receive regulatory approval from DFS.
In order for DFS to approve its trust charter application, GMO had to meet stringent requirements for its cybersecurity programs, as well as federal standards for anti-money laundering and economic sanctions. There are currently 26 other charters and licenses for companies engaged in virtual currency business activity, but GMO’s will be the first publicly available Yen-backed stablecoin.
To learn more about the charter grant, read the announcements from DFS and GMO.