New digital platform SettleNet launched in Japan for app development and stablecoins issuance

Crypto Garage which is a subsidiary of Tokyo-listed company Digital Garage has launched a new platform called SettleNet that will allow participating digital exchanges to issue stablecoins. These stablecoins shall be pegged to Japanese Yen on the “Liquid Network”, and can be traded against Liquid Bitcoin (L-BTC).

According to the press release, Digital Garage received authorisation to conduct the first blockchain and finance project or proof-of-concept trials under the Regulatory Sandbox in Japan managed by the Japanese Government.

To put it in simple terms, the project which was also participated in by Blockstream, will allow Japan-licensed crypto exchanges to test the SettleNet platform in issuing stablecoins. It will also provide settlement service between stablecoins and crypto assets.

Crypto Garage also said that by using atomic swap technology, the SettleNet platform will let the participating exchanges to deliver LBTC in exchange for Japanese Yen-Token. This will allow a fast, more secure and confidential transfer of the crypto assets and hereby eradicating the risk of dealing with counterparty.

In addition, SETTLENET will provide the regulatory authorities with the functionality to monitor any unlawful trade, including money laundering. The current crypto market faces challenges which prevent the sound development of the crypto market.

Some of the challenges identified by Crypto Garage include; unstable liquidity and/or price fluctuation due to underdeveloped market for the exchanges and institutions; high counterparts risk, low confidentiality of trade between trading parties and low visibility of trading for regulatory authorities that are brought about by lack of uniform trading and settlement platform; and increased security risk from leaving crypto assets due to reliance on consumer facing crypto exchanges.

Said project shall be for a 1 year term and shall include only crypto exchanges with Japanese Virtual Currency Exchange License. In addition, the transaction amounts will also be limited. Those who will participate will have full access to SettleNet free of charge.

About Arnold Zafra

Arnold Zafra is a freelance tech blogger from the Philippines who is enthusiastic about cryptocurrency, decentralised apps and other emerging developments in the tech industry.