The founders of the Xiong’An blockchain fund, supported by the Chinese city government of Hangzhou, are planning to launch a Japanese Yen backed stablecoin. This is according to news seen earlier this week, reported by the South China Morning Post.
Work on the stablecoin project has already begun, according to Yao Yongjie, one of the founding members of the Blockchain Fund. The team hopes to finish up and launch the Yen pegged stablecoin by the end of the year or latest early 2019.
The report adds that Grandshores Technology, another company which is also chaired by Yao and was recently listed in Hong Kong through a reverse takeover of SHIS — a Singapore construction firm, is also planning to raise $12.7 million (HK$100 million) to help finance the stablecoin project.
Yao says that the fund is reaching out for accredited investors who live outside China to help with contributions for the project. The fund is only accepting contributions in Tether – the U.S. dollar pegged crypto coin.
The report adds that the blockchain fund is working with a mid-tier bank in Japan for the project. Though the involved parties decline to mention the name of the bank. Yao says that in the future, stablecoins that are pegged to the Australian and Hong Kong dollars could also be developed.
Yao is also the head of Tunlan Capital, a Hangzhou based Investment Company which launched Grandshores Blockchain Fund. The launch was done in collaboration with Li Xiaolai — a Chinese bitcoin tycoon and the local government.
Launched in April of this year, the blockchain fund has $1.6 billion available to invest in innovative startups.
Many experts believe stablecoins have the potential to impact the crypto economy.
According to Cryptolinks;
“Stablecoins are what allow us to fully realize the promise of blockchain technology. Any application which requires a low threshold of volatility to be viable on a blockchain like consumer loans, simply they cannot be denominated in a currency which fluctuates 10–20 percent in a day, like Bitcoin and Ether.”
“If you’re using Bitcoin to send a remittance from one country to another, there’s a good chance that the price movement over the period of one block confirmation (how long it takes the blockchain to include your transaction) will be larger than the fees charged by Western Union or PayPal.”
Basil has three years of freelance experience writing on disruptive technologies. He focuses on breaking news and education pieces; helping to spread the gospel of Blockchain. He hopes to have his own blockchain company one day; helping the world through its innovative ledger technology