A branch of the Tokyo-listed internet company Digital Garage is currently working in collaboration with Blockstream, a bitcoin infrastructure startup to test a Japanese yen-pegged stablecoin.

Crypto Garage, which is a subsidiary of Digital Garage focused on blockchain and cryptocurrency announced on Monday that they have launched a new platform called SettleNet which will enable app development across Blockstream’s inter-exchange settlement network dubbed Liquid and this includes the issuance of stablecoins.

The project, which has been announced to last for 12 months, is one of the first proof-of-concept trials which has been authorised by a regulatory sandbox program overseen by Japanese authorities as per a statement from Crypto Garage.

The initiative’s goal is to allow participating members, namely crypto exchanges which are listed in Japan at this time to test the SettleNet platform and issue the yen-backed stablecoin as well as provide a settlement service between the stablecoin and other digital assets. Notably, Blockstream was also part of the creation of the platform.

Furthermore, Crypto Garage also stated that the yen-backed stablecoin would trade against the bitcoin-pegged token of Blockstream, Liquid Bitcoin (L-BTC) over their Liquid Network. Liquid is bitcoin sidechain initiative which went live last October. During the trial, transactions will, however, be conducted in a limited volume.

The firm elaborated:

“This will enable rapid, secure and confidential transfer of the crypto assets while eradicating counterparty risk. In addition, SettleNet will provide the regulatory authorities with the functionality to monitor any unlawful trade, including money laundering.”

Notably, Blockstream and Digital Garage had in the past collaborated back in November 2017 with goals of growing blockchain development and adoption in Japan.

Adam Back, CEO of Blockstream at the time had this to say:

“The Japanese market is ready for new business models that blockchain technologies can enable.”

As reported by CoinBeat last year, Japanese IT company GMO internet announced their plans to bring a yen-pegged stablecoin to the market known as the GMO Japanese Yen (GJY). At the time, the firm stated that the GJY would be available to the Asian market during the fiscal year of 2019.

We wonder which yen-pegged stablecoin will launch to market first? Let us know your thoughts by commenting below.

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