Coinbase to convert GYEN balances as yen stablecoin winds down
Coinbase will automatically convert customers' remaining GYEN holdings into USDC from Oct. 26, the exchange said in a notice, as issuer GMO-Z.com Trust Company winds down the Japanese yen-backed stablecoin. GYEN transfers will be disabled on Oct. 26, with outstanding balances converted between Oct. 26 and Oct. 30 at prevailing market rates and without transaction fees, Coinbase said. Holders who want to avoid the conversion must withdraw their tokens before the cutoff.
The shutdown closes a stablecoin with a market capitalisation of roughly $13 million. GMO Trust began winding down GYEN and its dollar-backed ZUSD in May, suspending new issuance and starting the voluntary dissolution of its New York-chartered trust company. In an Oct. 20 statement, the issuer said its 180-day redemption period closes on Nov. 11, leaving holders three weeks to exchange tokens directly for the currencies backing them, at one yen per GYEN and one dollar per ZUSD with no GMO Trust fee. Redemption requires an approved account, identity verification and an eligible linked bank account, with minimum thresholds of 100 GYEN or one ZUSD; banks may add transfer or foreign-exchange charges.
The two routes may produce different outcomes. Coinbase will convert at the prevailing market price, while GMO Trust guarantees the token's stated yen value through direct redemption, so amounts received could differ with the trading price and exchange rate. GMO Trust has warned that secondary-market prices may deviate from their intended pegs as circulating supply declines. Tokens left after Nov. 11 face a mandatory redemption process, converted at stated redemption values with GYEN's dollar equivalent set using an exchange rate fixed on Nov. 12; the issuer expects distributions to be completed by the end of 2026, subject to supported networks, compliance screening and wallet compatibility. Coinbase customers who do not withdraw before the cutoff will miss that later process, and the exchange has warned that deposits made after the conversion may be unrecoverable.
The wind-down follows years of controversy over GYEN's price stability and its handling by Coinbase. The token ran into trouble shortly after Coinbase began supporting it in November 2021, when its trading price surged far above the yen before collapsing. Investors sued Coinbase and GMO Trust in 2022, alleging both misled customers about a token marketed as maintaining a one-to-one peg with the yen; the complaint alleged some bought GYEN at up to seven times its intended value before it fell about 80% in a single day, and that Coinbase's subsequent trading restrictions compounded losses. A federal judge ordered arbitration of the claims against Coinbase in January 2023, while the case against GMO Trust continued in federal court under New York and California consumer protection laws.
In May 2026 a federal judge approved a $6.75 million settlement for eligible investors who lost money after buying GYEN while it traded away from its intended yen value. The settlement resolved the litigation against GMO Trust without a finding of wrongdoing; the company had disputed the allegations, and the agreement did not resolve the separate claims against Coinbase.
