Mitsui & Co to Pioneer Japan’s First Gold-Backed Stablecoin

Mitsui & Co, a Japanese renowned trading company is on track to launch ZipangCoin (ZPG), the country’s first gold-backed stablecoin. As reported by Nikkei Asia, the ZipangCoin is expected to be launched as early as this month, and the coin will be linked to gold prices dominated in the Japanese Yen and sold to retail investors through cryptocurrency exchanges.

Stablecoins are digital tokens whose prices are pegged to a tangible asset and do not fluctuate like that of Bitcoin (BTC) and other altcoins. The launch of ZipangCoin is a testament to the growing popularity of these token types, and the ZPG coin will be made available first to users through a Mitsui-established trading platform.

According to the report, Mitsui formed the exchange in conjunction with Seven Bank and others and has registered it with the Kanto Local Finance Bureau, with permission granted by the central government’s Financial Services Agency (FSA). Per the ZPG coin and its settlement features, each stablecoin will represent the price of one gram of gold and guaranteed by Sumitomo Mitsui Banking. 

The trading platforms upon which the ZipangCoin will be traded will be required to conduct Know-Your-Customer (KYC) procedures for customers who will be trading the ZPG coin. Access to the coin and its use as a payment token will be enabled through an application that will be embedded with a QR code or a wallet that can be used in all of Mitsui’s affiliated outlets in the country.

Mitsui & Co Setting the Pace for Global Stablecoin Adoption

Stablecoins are more a less a very controversial digital token as they are known to compete with fiat currencies around the world. Their use has drawn concern from regulators around the world, many of whom are torn between cracking down on the usage of digital tokens or embracing them through progressive regulations. 

With Japan progressing in its stance as a Bitcoin friendly and a crypto hub, the launch of ZipangCoin by Mitsui is bound to set a new pace for the adoption of stablecoins both in the country and around the world. While global brands like Meta Platforms Inc have not succeeded in their bid to float its stablecoin dubbed Diem which was heavily regulated even by Japanese watchdogs, other mainstream brands are not ruling out the potential of creating and issuing their own functional stablecoins.