Stablecoins have continued to gain prominence in the crypto industry as the unpredictable volatility of the crypto market continues to be a big thorn in the flesh. While Tether has been the undisputed king of this market for years, other players are coming on board and fighting for their piece of the pie. Just a week ago, the New York Department of Financial Services approved two stablecoins from both Gemini and Paxos. And now, a Chinese blockchain fund is gearing up to venture into the market by developing a stablecoin but unlike all the predecessors, the new stablecoin will be denominated in Japanese Yen.
A Stablecoin With A Difference
Grandshores Technology Group is the company that’s behind the stablecoin, with a report by the South China Morning Post revealing that the firm intends to raise HK$100 million (US$ 12.7 million) for the project. The firm, which is listed on the Hong Kong Stock Exchange, intends to raise the money from investors outside China through Tether, the biggest stablecoin in the market and the second-most traded crypto after Bitcoin globally.
Grandshores made the change from developing real estate to investing in blockchain startups after it was acquired by SHIS, a company whose majority owner is blockchain enthusiast, Yongjie Yao. Speaking to the Alibaba-owned English daily newspaper, Yao expressed his unwavering belief that the crypto and blockchain startups were disrupting the established financial system and finally taking power away from the financial and tech conglomerates.
Yao, who is also the founder of Hangzhou Grandshores Fund which is backed by the Hangzhou government and worth US$1.45 billion, compared the current state of blockchain technology to the early days of the computing systems.
“Blockchain will become the mainstream technology in the next three to five years. We are entering the next stage of blockchain evolution, a stage which is akin to when computer operating system was transiting from MS-DOS [disk operating system] to MS-Windows.
The Yen-pegged stablecoin will be in very high demand, Yao believes, citing cryptocurrency exchanges and traders as among the first potential clients. Currently, many exchanges facilitate the trading of cryptos such as Bitcoin and Ether against stablecoins, with Tether being the most popular. Other stablecoins such as TrueUSD, MakerDAO and Basis have had varying levels of success, but none has posed a serious threat to Tether. However, Yao, who also serves as a part-time lecturer at the Zhejiang University in Hangzhou believes that the new stablecoin will give Tether a run for its money.
The Hangzhou Grandshores fund has invested over 500 million yuan (US$ 73 million) globally in blockchain and crypto projects, the Post further revealed. The most renowned of its investments is Zcash, a privacy-focused crypto which uses the zk-SNARKS technology to give almost complete anonymity to parties in a transaction.
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