December 29, 2020
SUPERINTENDENT LACEWELL ANNOUNCES GRANT OF DFS TRUST CHARTER TO ENABLE GMO TO ENGAGE IN NEW YORK’S GROWING VIRTUAL MARKETPLACE
Superintendent of Financial Services Linda A. Lacewell announced today that the New York State Department of Financial Services (DFS) has granted a charter under New York Banking Law to GMO-Z.com Trust Company Inc., to operate as a limited liability trust company. With DFS approval, GMO is authorized to issue, administer, and redeem Japanese Yen and U.S. Dollar-pegged stablecoins in New York. The Japanese Yen stablecoin will be the first of its kind available to the public.
"New York continues to stay on the forefront of financial innovation as stablecoins take on growing significance and point to new directions in the future of money," said Superintendent Lacewell. "Approval of this charter is a testament to DFS’ commitment to encourage innovation, while providing rigorous regulatory oversight to uphold the integrity of the markets and to protect consumers.”
Including the charter granted to GMO, to date DFS has approved 27 charters and licenses for companies engaged in virtual currency business activity.
“We’re breaking ground with our move to issue the first regulated JPY-pegged stablecoin, which many see as a safe haven asset,” said Ken Nakamura, President and CEO of GMO-Z.com Trust Company, Inc. “But we are also pioneers and innovators in this space who envision building new applications of blockchain technology that transform our relationship with traditional financial services.”
DFS began licensing firms engaged in virtual currency businesses activity in 2015 and under the leadership of Superintendent Lacewell, DFS has revised the Department’s regulatory approach. This includes streamlining the process for companies to adopt new coins through a self-certification framework and a coins Greenlist, making use of the Department’s conditional licensing authority, and providing new clarity about DFS processes and expectations to applicants and licensed entities. These achievements are the result of ongoing dialogue with market participants and other stakeholders.
Additional information regarding DFS’s regulation of New York’s virtual currency marketplace can be found on the DFS website.