A new gold-based stablecoin from trading giant Mitsui is reportedly on the way

Japanese trading house Mitsui plans to issue a gold-pegged cryptocurrency, according to local news agency Nikkei Asia reported Friday. ...



Japanese trading house Mitsui plans to issue a gold-pegged cryptocurrency, according to local news agency Nikkei Asia reported Friday.

Called ZipangCoin (ZPG), Mitsui’s new digital currency would be issued as early as February and would be available to retail investors through cryptocurrency exchanges.

The stablecoin will be pegged to gold prices at yen-denominated prices by Mitsui of the London Metal Exchange, with a ZPG valued at one gram of gold and guaranteed by Sumitomo Mitsui Banking.

According to the report, the new gold stablecoin will initially be offered through proprietary crypto exchange Mitsui and later made available on other exchanges. The trading house has launched a crypto-trading platform with Seven Bank Japan, registering the exchange with the Kanto Local Finance Bureau under the approval of Japan’s Financial Services Agency (FSA).

The new gold-based digital currency aims to enable new options to mitigate financial risk and hedge against inflation. In addition to providing new investment opportunities, Mitsui also plans to allow the use of ZPG for payments via smartphones in stores and supermarkets, as well as for paying bills.

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Mitsui is not the only Japanese company focusing on the development of stablecoins. In November 2021, a consortium of 74 companies including Mitsubishi UFJ, Mizuho Financial and Sumitomo Mitsui Financial announced a trial of DCJPYa yen-based digital currency backed by bank deposits.

According to Nikkei, Mitsui hopes to issue its retail-focused ZPG before DCJPY.