Crypto Garage Launches SettleNet to Work with Blockstream’s Liquid Network, Will Test a Yen-Pegged Stablecoin
Crypto Garage, a Japanese blockchain company, has announced recently that it was able to get permission from the Japanese authorities in order to create a trial for its settlement system, which uses the Liquid Sidechain, which was created by Blockstream.
The company is a branch of Digital Garage, a Japanese company that works with the Bitcoin infrastructure in order to create new products such as a Japanese yen-pegged stablecoin.
According to the reports, Crypto Garage is the first Japanese company to receive the green light from the government and to be able to conduct a pilot of one year in the country. Exchanges from Japan will also participate in it.
The product will be known as Settlenet and it will use the Liquid technology to issue stablecoins which will be pegged to the JPY fiat currency. They will be traded on the Liquid Bitcoin Blockstream’s sidechain and will use atomic swaps to work. Atomic swaps are the cross-chain transactions that do not manually convert the assets.
Crypto Garage affirms that the changes will enable secure and quick transactions and that they will also diminish the risks suffered by the people using the technology. Also, the Settlenet will be used to provide the regulatrs and the financial authorities of the country with the ability to monitor money laundering and similar things.
This new product comes at a good time in Japan because the country has seen several hacks last year, so a new product that is so focused in security can be important for the development of the ecosystem.
Also, the platform will be used in app development for Blockstream’s Liquid, not only in the issuance of tokens.
The project, which is a first for Japan, aims to let the company test its services in order to create a Japanese stablecoin, something that the market is currently lacking at the moment. Now, we only need to wait and see how this initiative will develop during 2019, as this will be year of the pilot for this new product.