In line with a recent official ‘announcement‘ published, renowned Japanese blockchain development company named Crypto Garage declared it had gained regulatory working permissions to trial its settlement system employing Blockstream’s Liquid Sidechain.
Crypto Garage, that claimed to be the primary such blockchain finance project to obtain the green light beneath the Japanese govt’s restrictive sandbox scheme, would presently conduct an annual pilot with a cluster of collaborating crypto exchanges.
The product, dubbed Settlenet, uses Liquid as a part of an arrangement permitting exchanges to issue yen-pegged stablecoins and trade against L-BTC [Liquid Bitcoin], Blockstream’s sidechain.
The feature conjointly makes use of so called ‘atomic swaps,’ the flexibility to create cross-blockchain transactions while not manually converting assets.
“This can alter speedy, secure and confidential transfer of the crypto assets whereas eradicating counter-party risk,” Crypto Garage wrote in an exceedingly official ‘press release‘ recently:
“In addition, Settlenet can offer the regulatory authorities with the practicality to observe any unlawful trade, along with money laundering.”
Blockstream launched Liquid as the 1st public, production-ready Bitcoin sidechain, earlier in Oct. last year.
The implementation comes at a critical time for Japan, that forged a permissive yet ‘strict restrictive environment‘ for exchanges especially, following many high-profile hacks over the past year.
As ‘reported‘ earlier, Coincheck – the platform that lost over half a billion bucks last January, recently declared that it had gained full regulatory working licensing from the country’s finance regulator, the FSA [ Financial Services Agency].