Crypto Garage, a subsidiary of the Japanese IT giant Digital Garage launches the first-ever Yen backed stablecoin. The stablecoin has been launched on, SETTLENET, a crypto assets settlement platform to provide access to the Japanese OTC crypto market.
SETTLENET is a non-custodial crypto-asset OTC settlement application built on top of the Liquid Network. The Liquid Network developed by Blockstream is a layer 2 blockchain which enables the issuance of 1:1 backed cryptocurrency token and financial securities. The Japanese stablecoin on SETTLENET will be JPYS.
Liquid Network is largely meant for trading on exchanges and OTC desks. Currently, it has more than double the number of Bitcoins (2156 BTC) than the Lightning Network (LN). The Liquid Network has 45 governing council members which include leading crypto exchanges, brokers and index providers.
With SETTLENET, users can trade the listed assets on the Liquid Network without the worry of settlement counterparty risk.
The regulatory approvals for the project had been obtained in January 2019. The firm was granted the permission to “conduct the first blockchain and finance project under the Regulatory Sandbox in Japan, which is managed by Cabinet Secretariat of Japan.” After development for a year and a half, the stablecoin will interact with the Liquid Network to gain global crypto liquidity access.
The firm, Crypto Garage, is a product of the joint venture between Digital Garage and the Japanese money market broker, Tokyo Tanshi and Blockstream.
The stablecoin and crypto markets are largely dominated by US dollar-backed tokens. This is because of the global popularity of the US Dollar and its reserve currency pretence. Currently, Tether which is the largest stablecoin providers has issued over 94% of its assets in USDT, and the rest in CNY (0.3%) and EUR (4.5%) and less than 1% in gold.
Will the crypto-based supply of Japanese Yen grab a considerable share of the market? Please share your views with us.