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Mitsui & Co. to release crypto pegged to gold

Updated: Jul 25, 2024
Published: Feb 4, 2022
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Mitsui & Co. is one of the largest sogo shosha in Japan and part of the Mitsui Group. The firm is leading the crypto initiative in Japan with the launch of a cryptocurrency that is pegged to gold. The name of the token will be ZipangCoin, as confirmed by a report from Nikkei Asia. 

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ZipangCoin (ZPG) by Mitsui & Co.

ZipangCoin (ZPG) is expected to be released as early as February, and it seems that Mitsui has completed its planning on the same. The token will be linked to gold prices and will track the same. Moreover, the token will be added to cryptocurrency exchanges and will be traded via the same. The report from Nikkei Asia added:
"ZPG will allow people to purchase items at affiliated retailers via a smartphone app like other digital payment systems, which are becoming increasingly popular in the country."
It is confirmed that since the token from Mitsui & Co. will be tracking gold, the volatility will be way less as compared to Bitcoin or other cryptocurrencies. Cryptocurrencies aren't backed by tangible assets and hence, are very volatile. However, ZipangCoin aims to change this. 

Approval from the FSA

The efforts from Mitsui & Co. were approved by the Financial Services Authority (FSA), and the report also confirms that the firm will be launching a cryptocurrency exchange in partnership with Seven Bank. The exchange has been registered with the Kanto Local Finance Bureau. 

ZipangCoin (ZPG) "will be linked to gold procured at yen-denominated prices by Mitsui from the London Metal Exchange," and the value of 1 ZPG will be 1 gram of gold as guaranteed by Sumitomo Mitsui Banking. The token will be listed on the exchange launched by Mitsui and later on other cryptocurrency exchanges. Moreover, Mitsui wants the exchange to be used for payments. The report added:

"Users, for example, will install a 'wallet' app on their smartphones for purchasing items at convenience stores and supermarkets."

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