Hangzhou Grandshores Fund, a Hong Kong-based blockchain investment firm, is slated to launch a Yen backed cryptocurrency.
As per South China Morning Post, Hangzhou Grandshores Fund is in the process of raising HK$100 million (US$12.7 million), in order to bootstrap the project primarily aimed at providing a Yen-Stablecoin to the traders and users, in order to curb the price volatility in the currency cryptocurrency market.
Yongjie Yao, one of the founding partner’s of Grandshores Technology, also the founder of Hangzhou Grandshores Fund, which is evaluated at $1.45 billion and has the backing from Hangzhou government. He stated that the firm is currently working with a Japanese banking partner in order to create the Unnamed stablecoin which would be backed by Yen, slated to launch in late 2018 or early 2019.
As per Yongjie, Grandshores aims at developing the whole suite of fiat-pegged cryptocurrencies with the likes of HongKong Dollar and Australian Dollar. He states, “We believe cryptocurrency traders and exchanges will be potential takers of these stablecoin.”
Interestingly, Grandshores Technology stated that the yen-pegged tokens would be in denominations with Tether (USDT), USD backed stablecoin. Yao, emphasizing the development of the blockchain sector, expects the emerging tech to be in the mainstreams withing next half-decade.
“Blockchain will become the mainstream technology in the next three to five years,” he states, “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.”
The ensuing ensemble of trustable stablecoins is an important step in the adoption of blockchain and cryptocurrency since it would be providing users with enhanced exposure to the cryptocurrency technology(ex- near instant cross-border gross settlement) without the risk of price volatility. Having said that, the cons of the issued stablecoins lies int he censorship of transactions as well as strict adherence to KYC/AML policies, but this seems to be an acceptable tradeoff for security by institutional firms.
Recently this year, Gemini and Paxos, launched their USD-pegged stablecoins, which has been touted as the first regulated stablecoins.