Japanese Startup To Use Liquid Sidechain To Issue Tokenized Yen
Tokyo-based fintech startup Crypto Garage, Inc., a department of a public company Digital Garage, got a permission to launch a financial blockchain project in a regulatory sandbox under surveillance of Japanese Cabinet Secretariat. Startup will use Blockstream blockchain solution supplier’s Liquid sidechain.
Thus, Crypto Garage will develop SETTLENET, which will allow the exchanges-participants to tokenize yen basing on Liquid Network and to trade the asset.
Note that SETTLENET will use atomic swaps for immediate exchange of L-BTC to tokenized yen.
The startup’s representatives are sure that poorly developed infrastructure for exchanges and institutional investors is the reason of unstable liquidity and sharp price changes. At the same time, the startup points out that there are now universal trading platform, this leads to some particular risks.
At the moment, the project is at the concept stage. Nevertheless, its final goal is to create an OTC platform with transparent pricing.
It is also known that testing will last a year and that only the exchanges which have Japanese license will be able to participate.
To recap, earlier, inacta AG consulting company signed agreement with Bitcoin and blockchain solution developer Blockstream. A department of inacta AG will provide Blockstream with the services which may help financial institutions to use advantages of Liquid Sidechain.