G.U.Group, inc. (Headquarters: Shibuya, Tokyo; CEOs: Hidekazu Kondo and Daimei Inaba), a provider of Web3 solutions such as stablecoin issuance and management systems and blockchain infrastructure, has announced the signing of a basic agreement with Aozora Bank, Ltd. (Headquarters: Chiyoda, Tokyo; Representative Director, President and CEO: Hideto Oomi) to consider issuing a specific trust beneficiary rights-type stablecoin utilizing trust functions. Additionally, G.U. Group has successfully raised 150 million yen through convertible corporate bonds with token conversion rights from Aozora HYBRID3 Investment Business Limited Partnership, marking the first such bond issuance in Japan (according to the company). This brings the total amount raised by the group to approximately 1 billion yen.
The stablecoin, poised to lead the new era of digital asset circulation, enables faster, safer, and lower-cost transfers and payments. The stablecoin issuance and management system, developed by G.U. Technologies Co., Ltd., a group company, will be deployed on Japan's public blockchain, "Japan Open Chain."
◽️ About This Initiative
Stablecoins are digital currencies that can be used on blockchain platforms, primarily favored for their convenience in domestic and international remittances and payments, which are both instant and cost-effective. They also reduce intermediary costs (number of involved parties) and serve as programmable money. Additionally, they are preferred as a payment method for web3 services, such as RWA* and NFTs. With approximately 20 trillion yen already circulating worldwide, stablecoins are expected to be used in even broader fields. In Japan, stablecoins were officially recognized as a means of remittance and payment with the revised Payment Services Act, which came into effect on June 1, 2023. Several domestic banks have started considering issuing stablecoins, being one of the pioneers in legalizing electronic payment instruments (stablecoins) worldwide.
Our group company, G.U. Technologies Inc., is developing and providing "G.U. Coin Studio," a system that enables unified management of issuance and circulation of stablecoins for financial institutions aiming for live issuance. This system also allows integration with existing accounting and ledger systems.
Aozora Bank and our company have repeatedly discussed the potential of stablecoins as a new payment method that enhances convenience and the growth prospects of this business. We have now signed a basic agreement to jointly explore the issuance of trust-beneficiary-type stablecoins, leveraging trust functions, and have started our collaboration.
*RWA stands for "Real World Assets," referring to assets in the physical world.
◽️ "Japan Open Chain" is a blockchain optimized for financial businesses, supporting the issuance and circulation of stablecoins.
Validators
CORGEAR, a startup within the Sony Group, NTT Communications from the NTT Group, Dentsu, TIS, and other leading industry companies have been selected as validators (blockchain operating partners) through a rigorous approval process. Together, they operate a public blockchain that is Ethereum-compatible (Layer 1). Designed to comply with Japanese laws, this blockchain provides a practical infrastructure that can be used safely, securely, and affordably by anyone around the world. It is particularly optimized for use in the financial and business sectors.
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◽️ About Aozora Bank
Aozora Bank, under its management philosophy, the "Aozora Mission," is committed to "creating financial value and contributing to societal development" and is promoting the "Aozora’s Strategic Investments Business."
The "Aozora’s Strategic Investments Business," involves engaging in sincere dialogues and making proposals with clients' management teams, while providing long-term support through debt and equity investments. This initiative aims to nurture emerging industries, actively assist in the restructuring and revitalization of businesses transforming, and achieve mutual growth.
【Company Overview】
Company name: Aozora Bank, Ltd.
Head Office: 6-1-1 Kojimachi, Chiyoda-ku, Tokyo 102-8660, Japan
Representative Director and President: Hideto Oomi
Date of establishment: April 1957
URL: https://www.aozorabank.co.jp/english/