There will be a 1:1 backing of the tokenized yen by the actual yen of Japan. Today, the Japanese yen will be added to the blockchain in a tokenized form.
One of the first exchanges to bring the Japanese yen (JPY) onto the blockchain will be Helix, a decentralized exchange on Injective, which will debut the JPY currency pair on its platform.
Among the world’s most traded currencies, the Japanese yen ranks fourth, after the US dollar, the euro, and the British pound.
The head of product at Helix, Chris Choi, told Blockworks that tokenized yen, which trades for billions of dollars every day, has almost no place to be acquired at the moment.
He mentions that the most recent integration will allow Injective dapp users to access an on-chain FX decentralized.
As far as volume goes, the three most active currencies in the world of foreign exchange are the US dollar, the euro, and the yen. In contrast to the US dollar and the Euro, the yen has “been underserved” in the cryptocurrency market, according to Choi.
Decentralized exchange Cables Finance, which has been attempting to bring conventional financial currencies onto the blockchain, is collaborating on the production of the tokenized JPY. The Japanese yen will be stored in a trust and will be used as a 1:1 backing for each tokenized yen.
The possibility of bringing stablecoins from Japan onto the blockchain has been considered by more than just Helix. Token issuance technology Noble and cross-chain bridge supplier TOKI were looking at methods to integrate fully collateralized Japanese stablecoins into the Cosmos ecosystem earlier this year.
Over 200 Japanese corporations, including SMBC and Mizuho, rallied behind the idea, which had the backing of Mitsubishi UFJ Trust and Banking (MUFG), a major Japanese bank.
Though it is anticipated that the project’s mainnet launch would take place between the fourth quarter of 2023 and the first quarter of 2024, it has not yet happened.
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