Japanese Company G.U.Technologies Launches Proof of Concept for Stablecoin Issuance on Japan Open Chain
On March 2nd, Japanese company “G.U.Technologies,” which develops Web3 infrastructure, announced the launch of a proof-of-concept experiment aimed at issuing stablecoins using the “Japan Open Chain,” a blockchain that is fully compatible with Ethereum (ETH).
Japan Open Chain is a blockchain that complies with Japanese law. Three financial institutions, Tokyo Kiraboshi Financial Group, Minna no Bank, and Shikoku Bank, will participate in the experiment. Ultimately, the experiment aims to link the test and production environments of banking systems and issue legally backed stablecoins. G.U.Technologies will use its stablecoin system for issuance and transfers during the experiment. The company aims to implement a compliant stablecoin system and promote the adoption of stablecoins among local governments, private companies, and individuals through the experiment.
日本法に準拠する各行独自のステーブルコインを @JapanOpenChain 上で発行へ！#東京きらぼしフィナンシャルグループ#みんなの銀行#四国銀行#ステーブルコインhttps://t.co/bDcQAyM06t pic.twitter.com/9w2lkSZwf3
— G.U.net (@G_U_net) March 1, 2023
One of the significant features of this stablecoin is that the underlying blockchain is compatible with Ethereum, allowing it to be used through Ethereum wallets such as MetaMask. The experiment will confirm whether each bank can issue its own stablecoin.
Japan is expected to lift the ban on the circulation of stablecoins issued overseas this year. G.U.Technologies explained that the revised Payment Services Act, which regulates stablecoins, is scheduled to come into effect by June of this year. The company also listed the benefits of stablecoin issuers such as banks and trust banks, including “expectations for inflows of funds from around the world through the issuance of foreign currency-denominated stablecoins.” After the proof-of-concept experiment, the company aims to support the issuance of unique stablecoins by various financial institutions and is still recruiting participants for the experiment.
The use cases for this stablecoin include the following examples:
- A new payment method for individuals and companies domestically and internationally, replacing all-net and SWIFT.
- The primary payment method for NFTs and other Web3 transactions.
- An online payment method for all transactions, replacing credit cards.
- The buying and selling of digital securities issued on the blockchain.
- Issuing stablecoins as regional currencies.
Japan Open Chain is a blockchain operated by Japanese companies. The press release also explained that Japan Open Chain is a “public blockchain,” and it is expected to be available for use by individuals and companies both domestically and internationally in the long term. Currently, six organizations participate as validators, and there are plans to increase the number of participating organizations to 21. These organizations include G.U.Technologies, CorgiA, Dentsu, Minna no Bank, Pixiv, and Kyoto University of the Arts.
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