Coinbase will automatically convert customers’ remaining GYEN holdings into USDC from Oct. 26 to Oct. 30, as the Japanese yen-backed stablecoin approaches the end of its issuer-supported redemption period. The exchange’s decision follows years of controversy surrounding GYEN’s price stability, including a sharp 2021 trading collapse and litigation that led to a $6.75 million settlement involving GMO-Z.com Trust Company.
Coinbase sets conversion deadline for GYEN holders
Coinbase said in an Oct. 20 notice that it will disable GYEN transfers on Oct. 26. Between Oct. 26 and Oct. 30, the exchange will convert customers’ outstanding GYEN balances into USDC at prevailing market prices, without charging transaction fees.
GYEN is a stablecoin designed to track the Japanese yen. Its issuer, GMO-Z.com Trust Company, is now winding down the token, which has a market capitalization of approximately $13 million. Customers who do not want Coinbase to carry out the conversion must withdraw their GYEN before the Oct. 26 cutoff.
Coinbase has also warned that GYEN deposits made after the conversion may be unrecoverable. The exchange’s process means that customers who keep their tokens on Coinbase will receive an amount of USDC determined by the market price available during the conversion window, rather than by a guaranteed fixed yen value.
According to CryptoSlate, that distinction could matter because GYEN’s trading price may differ from the value specified by its issuer, particularly as the token’s circulating supply declines during the shutdown.
Direct redemption remains available until Nov. 11
GMO Trust began winding down GYEN and its dollar-backed ZUSD stablecoin in May. The company suspended new issuance and started the voluntary dissolution of its New York-chartered trust company.
In a statement dated Oct. 20, GMO Trust reminded holders that its 180-day redemption period will end on Nov. 11. Eligible customers can redeem each GYEN directly for one Japanese yen and each ZUSD for one US dollar, with no redemption fee charged by the issuer.
Direct redemption is subject to several conditions. Customers need an approved account, identity verification and an eligible linked bank account. The minimum redemption threshold is 100 GYEN or one ZUSD. Banks may also apply their own transfer or foreign-exchange charges.
These rules create two different paths for holders. A customer who withdraws GYEN from Coinbase before the exchange deadline may be able to pursue the issuer’s fixed-value redemption, provided the customer meets GMO Trust’s requirements. A customer who leaves the tokens on Coinbase will instead receive USDC based on the market rate used by the exchange.
GMO Trust has said that secondary-market prices can move away from the intended pegs as the shutdown progresses. After Nov. 11, eligible tokens still outstanding will enter a mandatory redemption process. GYEN will be converted into USDC using its stated redemption value, with the dollar equivalent calculated from an exchange rate fixed on Nov. 12.
GMO Trust expects those distributions to be completed by the end of 2026. The process depends on supported blockchain networks, compliance screening and compatible wallets. Holders whose wallets do not meet the applicable requirements may not receive an automatic distribution.
GYEN’s collapse led to investor litigation
The wind-down closes a difficult chapter for GYEN, whose stability came under scrutiny soon after Coinbase began supporting the token in November 2021.
GYEN’s trading price rose far above its intended Japanese yen value before falling sharply. A lawsuit described by CryptoSlate alleged that some investors purchased the token at prices as high as seven times its intended value and that it then fell about 80% in one day.
Investors sued Coinbase and GMO Trust, claiming the companies had misled customers about a token marketed as maintaining a one-to-one relationship with the yen. Coinbase later restricted trading. Plaintiffs argued that the restriction prevented some customers from selling and worsened their losses.
The legal claims against the two companies proceeded separately. In January 2023, a federal judge ordered the claims against Coinbase into arbitration. 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 was trading away from its intended yen value. The settlement resolved the litigation against GMO Trust without a finding of wrongdoing. GMO Trust disputed the allegations, and the agreement did not settle the separate claims against Coinbase.
Moneyiar market picture
Moneyiar data at 08:23-08:24 on Oct. 24, 2026, showed mixed performance among the tracked digital assets:
- Sui (SUI): $0.9474086789, down 4.85% over 24 hours and 5.9% over seven days.
- Stable (STABLE): $0.0264358302, up 3.41% over 24 hours and 1.69% over seven days.
- Celestia (TIA): $0.5420260549, down 2.01% over 24 hours and 25.18% over seven days.
- Monad (MON): $0.0211801251, down 2.85% over 24 hours and 6.63% over seven days.
The figures provide a snapshot of wider digital-asset trading conditions as GYEN holders face separate deadlines for exchange conversion and direct issuer redemption.
