Coinbase converts GYEN to USDC as GMO Trust closes yen stablecoin

Coinbase is set to automatically convert the remaining GYEN holdings of its customers into USDC on October 26, a strategic move that effectively forces holders to withdraw their tokens before the exchange disables all transfers to allow them to access the fixed-value redemption process offered by the issuer.

The crypto exchange issued this formal notice on October 20, clarifying that it will disable all GYEN transfers on October 26 and will then convert any outstanding balances into USDC between October 26 and October 30. This conversion process will occur at the prevailing market rates and will be conducted without the application of transaction fees. Customers who wish to avoid this automatic conversion process must ensure they withdraw their GYEN tokens before the October 26 cutoff date arrives.

Issuer Closes Redemption Window

GMO-Z.com Trust Company is currently in the final stages of winding down GYEN as well as its dollar-backed ZUSD stablecoin. The issuer had previously suspended the issuance of new tokens in May and subsequently initiated the voluntary dissolution of its trust company chartered in New York. In a statement released on October 20, GMO Trust reminded all holders that its 180-day redemption period is scheduled to close on November 11, which leaves a three-week window for those seeking direct exchanges.

Under the current arrangement, eligible customers are able to redeem each GYEN for one Japanese yen and each ZUSD for one US dollar without any fees being charged by GMO Trust. However, this specific process carries several requirements. Customers are required to have an approved account, must complete a full identity verification process, and must link an eligible bank account. Minimum redemption thresholds have been set at 100 GYEN or one ZUSD. While the issuer itself does not charge fees, it is noted that banks may impose their own additional transfer or foreign-exchange charges for these direct redemptions.

The difference between these redemption methods creates varying financial outcomes for the user. Coinbase will utilize the prevailing market price for its conversion into USDC, whereas GMO Trust guarantees the stated yen value of the token through its own direct redemption process. As a result, customers could receive different total amounts depending on the trading price and the exchange rate at the exact time of conversion. GMO Trust has warned that secondary-market prices may deviate from their intended pegs as the circulating supply of the token declines during the shutdown.

Mandatory Redemption Process

For those tokens that remain unredeemed after the November 11 deadline, GMO Trust has established a mandatory redemption process. These specific holdings will be converted into USDC based on their stated redemption values. The dollar equivalent for GYEN will be determined using an exchange rate that is fixed on November 12. The issuer expects to complete the distributions for this mandatory process by the end of 2026.

This later conversion process is subject to several conditions, including the use of supported blockchain networks, compliance screening, and wallet compatibility. Holders whose wallets do not meet these specific requirements may not receive the automatic distributions. Coinbase customers who do not withdraw their GYEN before the exchange’s October 26 cutoff will miss this issuer-led process entirely. The platform has also warned that any deposits made after the conversion may be unrecoverable.

The market capitalization of GYEN is currently approximately $13 million. The token’s circulation is set to end as the issuer finalizes its dissolution. The distinction between the automatic conversion performed by the exchange and the final redemption options provided by the issuer is the primary financial consideration for the remaining holders.

Legal History and Settlement

The shutdown of GYEN follows years of controversy regarding the price stability of the stablecoin and the manner in which it was handled by Coinbase. The token faced significant problems shortly after Coinbase began supporting it in November 2021. Its trading price surged far above the value of the Japanese yen before it eventually collapsed. This volatility triggered a series of investor lawsuits against both Coinbase and GMO Trust.

In May 2022, investors filed a lawsuit alleging that both companies misled customers about the stability of a token that was marketed as maintaining a one-to-one peg with the yen. The complaint stated that some investors bought GYEN at prices up to seven times its intended value before the token plunged about 80% in a single day. Coinbase subsequently restricted trading, a decision that plaintiffs argued prevented customers from selling their holdings and compounded their losses.

The legal dispute eventually moved into separate proceedings. A federal judge ordered the arbitration of the claims against Coinbase in January 2023. The case against GMO Trust continued in federal court, where investors pursued claims under consumer protection laws in New York and California. 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 any finding of wrongdoing. The company had disputed the allegations, and the agreement did not resolve the separate claims against Coinbase. The final redemption of the stablecoin marks the end of the token’s active trading period after this extended legal and financial dispute.