Tokyo-based startup Crypto Garage, Inc., a division of the public company Digital Garage, received permission to launch a financial blockchain project in a regulatory sandbox supervised by the Cabinet of Ministers of Japan. It is known that a startup involves the Liquid sidechain.
Crypto Garage will develop SETTLENET, which will allow producing tokenized yen on the basis of the Liquid Network for the exchanges-members, as well as trading an asset against L-BTC, tied to the value of bitcoin.
Note that atomic swaps will be used in SETTLENET to instantly exchange L-BTC for tokenized yen.
Representatives of the startup are convinced that the underdeveloped infrastructure for exchanges and institutions is the cause of unstable liquidity and sharp price movements. At the same time, in a startup they point to the absence of a universal trading platform that pulls certain risks along.
While the project is at the concept stage. However, its ultimate goal is to create an OTC platform with transparent pricing.
It is also known that testing will last exactly one year, and only licensed exchanges in the country will be able to participate.
Earlier consulting company inacta AG has signed a cooperation agreement with the developer of Bitcoin and Blockchain solutions Blockstream. Inacta AG will provide Blockstream with services that “help financial institutions take advantage of Sidechain Liquid”.