a stack of gold bitcoins laid on Yuan bills

Hong Kong Firm to Launch Yen-Pegged Stablecoin as China Warns against ICOs

Sep 20, 2018, 7:01AM
1 min, 20 sec READ

Grandshores new stable coin will be the latest in a slew of assets that aim to provide investors with exposure to fiat currencies

At a time when the Chinese government remains hostile towards cryptocurrencies and ICOs, Grandshores Technology Group, a Hong-Kong based blockchain investment firm, moves forward with plans to develop a new stable coin backed by the Japanese Yen. The new asset is yet unnamed, but according to Yongii Yao, Grandshores founding partner, its upcoming funding round will be denominated in Tether (USDT), and the coin will launch sometime in late 2018 or early 2019. 

Yao further states,

We believe cryptocurrency traders and exchanges will be potential takers of these stablecoins [...] 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.

Yao's optimism is not shared by everyone. Earlier this week, the People's Bank of China issued a new warning to remind investors of the dangers associated with virtual currencies and Initial Coin offerings. This warning comes a little over a year after the Chinese government issued a blanket bank on ICO fundraisers in the country. 

Grandshores new stable coin will be the latest in a slew of assets that aim to provide investors with exposure to fiat currencies and bypass the price volatility found in mainstream cryptocurrencies. Earlier this month, New York state authorities approved two dollar-linked stablecoins developed by Paxos Trust Company and the Winklevoss twin's Gemini Trust Company. The assets were the first of their kind to obtain this level of approval in the United States. 

Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.