- Following the announcement, the price of XLM has gained 6.72 percent in the last 24 hours to currently be trading at $0.096.
- The Stellar Development Foundation (SDF), is a non-profit organization supporting the development and growth of the open-source Stellar network.
Stellar Lumens (XLM), the native cryptocurrency of the Stellar blockchain, is set to see a big boost with the integration of two reputable stablecoins on the blockchain-based payments network.
The Stellar Development Foundation (SDF), a non-profit organization supporting the development and growth of the open-source Stellar network, said in a press release that it has launched the GYEN and ZUSD stablecoins on the Stellar network in partnership with GMO-Z.com Trust Company.
The New York-based company is a regulated subsidiary of the Japanese internet conglomerate GMO Internet Group which is the issuer of the stablecoins. GYEN is the world’s first regulated Japanese yen (“JPY”) stablecoin, while ZUSD is a U.S. dollar-pegged stablecoin.
CEO and executive director of SDF, Denelle Dixon, said in a statement that the foundation is excited to work with GMO Trust to bring the stablecoins to the Stellar network. He wrote;
This integration will merge the speed, scale, and affordability of Stellar with the global utility of the world’s first regulated JPY-pegged stablecoin, a significant milestone on our path to improving interoperability between global payment systems,
For his part, Ken Nakamura, CEO of GMO-Z.com Trust Company said that the integration will connect traditional fiat rails with blockchain-based rails. He further noted that launching on Stellar will benefit clients seeking a “much faster, cheaper, and more scalable solution when compared to Ethereum.”
The release states that both stablecoins are fully backed by 1:1 with fiat reserves of JPY and USD respectively, with the reserves publicly audited monthly by an independent accredited accounting firm.
GMO Trust is also offering a no-cost swap between the Ethereum and Stellar versions of the stablecoins. Customers including dApps, exchanges, and payment firms will be able to leverage GMO Trust’s APIs.
XLM price staging recovery
Meanwhile, GYEN and ZUSD are not the first stablecoins on the Stellar network. The payment network saw the integration of the Circle-issued USDC stablecoin as a native asset last year. This has seen adoption by protocols building on the network including Wirex, a UK-based digital payment platform.
Following the announcement, the price of XLM has gained a 6.72% in the last 24 hours to currently be trading at $0.096 per CoinMarketCap data. The rally comes after the token fell to a two-year price of $0.0815. The price drop has been linked to the FTX liquidity crunch-induced market contagion.
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