Coinbase to halt GYEN stablecoin transfers and convert balances

Coinbase has announced it will stop supporting transfers of GYEN, a Japanese yen-pegged stablecoin issued by GMO Trust. The exchange will cease allowing users to send or receive GYEN on the platform.

Users holding GYEN on Coinbase have options regarding their holdings. They may withdraw GYEN to a private wallet to facilitate a direct redemption with GMO Trust before the issuer's deadline, or they can allow Coinbase to automatically convert their balances into USD Coin (USDC) at prevailing market rates.

There is a potential discrepancy between market rates on the exchange and the nominal value of the token. In cases of low liquidity, the market price may deviate from the intended peg. This move follows previous volatility for the token, which experienced a price crash after its 2021 listing that resulted in investor lawsuits.