Blockstream has announced Crypto Garage, a joint venture with Digital Garage and Tokyo Tanshi, to serve the Japanese Bitcoin market. The partnership will soon launch the Liquid sidechain based SETTLENET suite, the first application of which will be a yen-pegged stablecoin.
SETTLENET on Bitcoin’s Liquid Sidechain
The SETTLENET suite aims to provide Japanese exchanges and OTC trading desks with enhanced liquidity, speed and security. Although why Crypto Garage feel the need to shout SETTLENET every time is anybody’s guess.
Exchanges can issue the JPY-token (L-JPY) on the Liquid sidechain, and trade it against Liquid Bitcoin (L-BTC) using atomic swaps. Atomic swaps allow instant, trustless, peer to peer trading between different types of digital asset.
Needless to say, Blockstream CEO, Adam Back’s tweet of the announcement attracted equal parts awe and mockery. The latter, in particular, from the Ripple-army, who were quick to point out how easily XRP could achieve this (though whether XRP is trustless is a different argument).
Compliant With Japanese Regulations
One of the Crypto Garage partners must have some friends in high places because SETTLENET has already received regulatory clearance. Both the Japanese Financial Services Authority and the Cabinet Secretariat approve. This leaves the JPY-token well-placed to be a key driver in Japanese Bitcoin market liquidity.
CEO of Crypto Garage, Masahito Okuma, said:
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.
The venture also marks the continuing growth of the Liquid Network sidechain since its launch last October. Blockstream market Liquid as a fast, secure, and confidential method for high trading-volume entities such as exchanges, brokers, and financial institutions to transact.
JPY-token is just the beginning of Blockstream’s ambitions for the stablecoin market, according to CSO, Samson Mow:
We expect SETTLENET’s Japanese yen token to be the first of many stablecoin issuances on Liquid.
What do you think about the Liquid sidechain welcoming its first stablecoin? Share your thoughts!
Images courtesy of Shutterstock, Twitter/@adam3us