Grandshores Technology Group announced the development of their Yen-Stablecoin project on Monday. The Hong-Kong listed company which is also a blockchain investor is pegged to a 10 billion yuan (US$1.46 billion) global blockchain fund that is majorly backed by China’s Hangzhou municipality.
In an attempt to lead the pack in investing in GJY, the company appointed China’s “Bitcoin evangelist”, Li Xiaolai, as its executive director and co-chief executive on December 3. Mr. Li, the Bitfund founder, is set to lead several projects at Grandshores. Among these projects is the stablecoin pegged to the yen.
Targets to launch the yen stablecoin by February 2019
The company has raised HK$100m through a digital token fund primarily to invest in the Japanese crypto. Grandshores targets to launch the yen stablecoin by February 2019 according to sources close to the company.
Yao Yongjie, the company’s chairman, confirmed that they would explore Australian and Hong Kong Dollars stablecoins in future.
Increasing demand for stablecoins
There is an increasing demand for stablecoins within the global crypto community to bring sanity and security to the market. These new tokens are useful for the settlement of various cryptocurrency-denominated trades.
More traders prefer to transact in stablecoins over fiat currencies due to their faster settlement times. The coins also offer price stability especially during the era of cryptocurrency market volatility.
Li’s net worth is around 7 billion yuan
Li Xiaolai, a 46-year old English-language teacher before indulging in blockchain and bitcoin start-up investment, is an alumnus of Changchun University holding an industrial enterprise accounting degree.
His other blockchain investment is INBlockchain that has invested in various blockchain projects like EOS.IO. His term is indefinite and he will be in office until the company’s next annual general meeting scheduled for August 2019.
Grandshore also stated that Li’s pay will be deliberated by its remuneration board and committee. In October, Hurun estimated Li’s net worth at around 7 billion yuan. The company is a major launch pad for the Hangzhou Grandshores Fund. It aims at supporting the backers of its mainland affiliate fund to invest globally into various blockchain start-ups.
Grandshores has the potential of becoming a private company or the next blockchain unicorn valued at over US$1 billion.
Mr. Li is also listed among the founders of the Hangzhou Grandshores Fund. Wang Qian, 30, is the company’s other co-CEO. He previously worked as a fund manager with Investment in Hong Kong. After that announcement, the Grandshores shares closed at HK$1.25, 22.6% higher, on December 4.