Today it was announced that Blockstream, a blockchain infrastructure technology company has entered a new joint venture called Crypto Garage, with Japanese blockchain company Digital Garage and financial company Tokyo Tanshi. As part of the joint venture, Crypto Garage will soon launch SETTLENET, a suite of products based on the Liquid Network that will enhance trading efficiency and security for participants in the Japanese bitcoin market.
The first application to launch on SETTLENET will be a Japanese yen stablecoin (JPY-Token) which can be traded for bitcoin pegged to the Liquid sidechain (L-BTC) using atomic swaps. This will provide participating exchanges and trading desks in Japan with a rapid, secure, and private platform for completing their transactions while significantly minimizing counterparty risk.
“We’re very excited to see the continued growth of the Liquid Network ecosystem and expect SETTLENET’s Japanese yen token to be the first of many stablecoin issuances on Liquid,” said Samson Mow, CSO of Blockstream. “For serious crypto finance applications that require secure and reliable blockchain technology, Liquid is the only real option.”
SETTLEMENT has received clearance to operate in one of Japan’s regulatory sandboxes, with approvals from both the Japanese Financial Services Agency (FSA) as well as the Cabinet Secretariat. As such, the Liquid-based JPY-Token is positioned to become one of the key drivers of Bitcoin liquidity in the Japanese market.
“Exchanges and OTC trading desks have been waiting for a solution like this,” said Masahito Okuma, CEO of Crypto Garage. “SETTLENET together with Liquid makes trustless Bitcoin trading a reality, in a sustainable regulated environment. This is going to lead to a huge boost in Bitcoin liquidity in Japan and cement the region’s place as a leader in the emerging Bitcoin industry.”
In addition to the joint venture deal, Blockstream received an additional $10 million investment from Digital Garage. This investment will provide additional resources to ramp up development on multiple products–such as the Liquid Network, the Cryptocurrency Data Feed, and new product lines–accelerating Blockstream’s work on building key infrastructure for the future bitcoin economy.