Japanese local news agency Nikkei Asia reports that Mitsui, a Japanese trading house, is planning to issue a cryptocurrency that is gold-backed. ZipangCoin (ZPG), Mitsui’s digital currency, will be issued as early as this month. It will be accessible to retail investors via cryptocurrency exchanges.
The stablecoin will be linked with gold prices at yen-denominated prices by Mitsui of the London Metal Exchange. One ZPG is equivalent to one gram of gold, and it is guaranteed by Sumitomo Mitsui Banking.
The report states that the new stablecoin of gold will initially be offered by Mitsui’s crypto exchange, but later it will be available on other exchanges. The trading house created a crypto trading platform in partnership with Seven Bank Japan and registered the exchange with Kanto Local Finance Bureau, Japan’s Financial Services Agency.
A gold-pegged cryptocurrency was created to allow younger crypto investors to better manage assets. While buying gold is an easy way to hedge against inflation, it is much easier to buy a digital token.
The company also plans to develop a mobile wallet application. Holders can use this app to make purchases in affiliated retail stores using ZPG.
This new gold-based digital currency will reportedly allow for new ways to hedge against inflation and mitigate financial risk, according to Mitsui. The trading house plans to offer new investment opportunities and allow ZPG also to be used to make payments at supermarkets and stores via smartphones.
Mitsui isn’t the only Japanese company that is focused on stablecoin technology. A consortium of 74 companies, including Mitsubishi UFJ Financial, Mizuho Financial and Sumitomo Mitsui Financial, announced a trial for digital Japanese yen in November 2021.
