The roughly $13 million yen-backed stablecoin is nearing the end of its wind-down, following a 2021 trading controversy and a $6.75 million settlement with its issuer.

Coinbase will automatically convert customers' remaining GYEN holdings into USDC next week, ahead of the stablecoin issuer's final redemption deadline.

The crypto exchange said in an Oct. 20 notice 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.

The decision comes as GMO-Z.com Trust Company winds down the Japanese yen-backed stablecoin, which has a market capitalization of approximately $13 million. Customers seeking to avoid Coinbase's conversion must withdraw their tokens before Oct. 26.

The shutdown marks the final chapter for a stablecoin whose troubled trading history triggered investor lawsuits and eventually resulted in a $6.75 million settlement earlier this year.

GMO Trust began winding down GYEN and its dollar-backed ZUSD stablecoin in May, suspending new issuance and initiating the voluntary dissolution of its New York-chartered trust company.

In an Oct. 20 statement, the issuer reminded holders that its 180-day redemption period closes on Nov. 11, giving them three weeks to exchange their tokens directly for the currencies backing them.

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 also meet minimum redemption thresholds of 100 GYEN or one ZUSD, while banks may impose additional transfer or foreign-exchange charges.

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