Coinbase to drop this Japanese yen stablecoin years after its price crash sparked investor lawsuits
Holders who want to avoid market-rate conversion must withdraw before Monday, ahead of GMO Trust’s Nov. 11 initial direct-redemption deadline. Read the full story on CryptoSlateUnderstand the crypto stories that matter and what to watch next. Get The Catalyst in your inbox
Coinbase will automatically convert customers' remaining GYEN holdings into USDC next week, ahead of the stablecoin issuer's final redemption deadline.
The crypto exchange said in an Oct. 20 notice that it will disable GYEN transfers on Oct. 26 and convert outstanding balances between Oct. 26 and Oct. 30 at prevailing market rates without transaction fees.
The decision comes as GMO-Z.com Trust Company winds down the Japanese yen-backed stablecoin, which has a market capitalization of approximately $13 million. Customers seeking to avoid Coinbase's conversion must withdraw their tokens before Oct. 26.
The shutdown marks the final chapter for a stablecoin whose troubled trading history triggered investor lawsuits and eventually resulted in a $6.75 million settlement earlier this year.
GMO Trust began winding down GYEN and its dollar-backed ZUSD stablecoin in May, suspending new issuance and initiating the voluntary dissolution of its New York-chartered trust company.
In an Oct. 20 statement, the issuer reminded holders that its 180-day redemption period closes on Nov. 11, giving them three weeks to exchange their tokens directly for the currencies backing them.
Under the arrangement, eligible customers can redeem each GYEN for one Japanese yen and each ZUSD for one US dollar without fees charged by GMO Trust.
However, the process requires an approved account, identity verification, and an eligible linked bank account. Customers must also meet minimum redemption thresholds of 100 GYEN or one ZUSD, while banks may impose additional transfer or foreign-exchange charges.
These requirements create different financial outcomes for holders using Coinbase and those redeeming directly with the issuer.
Coinbase will use the prevailing market price when converting GYEN to USDC, while GMO Trust guarantees the token's stated yen value through its direct redemption process. Customers could therefore receive different amounts depending on the prevailing trading price and exchange rate.
GMO Trust has warned that secondary-market prices may deviate from their intended pegs as circulating supply declines during the shutdown.