Coinbase will automatically convert customers' remaining GYEN holdings into USDC next week, ahead of the stablecoin issuer's final redemption deadline. The crypto exchange announced on Oct. 20 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.
Customers seeking to avoid Coinbase's conversion must withdraw their tokens before Oct. 26. The market capitalization of GYEN is approximately $13 million.
GMO Trust's Redemption Process
GMO-Z.com Trust Company, the issuer of GYEN, began winding down the stablecoin in May, suspending new issuance and initiating voluntary dissolution of its New York-chartered trust company. The company reminded holders that its 180-day redemption period closes on Nov. 11.
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 meet minimum redemption thresholds of 100 GYEN or one ZUSD, and banks may impose additional transfer or foreign-exchange charges.
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. This means customers could receive different amounts depending on the prevailing trading price and exchange rate.
GMO Trust established a mandatory redemption process for eligible tokens remaining after Nov. 11. Those holdings will be converted into USDC based on their stated redemption values, with GYEN's dollar equivalent determined using an exchange rate fixed on Nov. 12. The issuer expects distributions to be completed by the end of 2026.
GYEN's Troubled History
GYEN's shutdown follows years of controversy over the stablecoin's price stability. The token faced major problems shortly after Coinbase began supporting it in November 2021, when its trading price surged far above the Japanese yen before collapsing.
In May 2022, investors sued Coinbase and GMO Trust, alleging that both companies misled customers about the stability of a token marketed as maintaining a one-to-one peg with the yen. The complaint alleged that some investors bought GYEN at prices up to seven times its intended value before the token plunged approximately 80% in a single day.
Coinbase subsequently restricted trading, a decision plaintiffs argued prevented customers from selling their holdings and compounded their losses.
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 separate claims against Coinbase were not resolved by this settlement.
