Three major banks in Japan will issue stablecoins on an Ethereum-compatible blockchain created by Tokyo-based G.U. Technologies, the blockchain-related tools developer announced in a press release on Thursday.
See related article: Japan to launch digital yen pilot programme in April
- According to G.U. Technologies, the test will initially focus on the issuance and remittance of electronic payments, with future plans for a stablecoin system involving local governments and private companies.
- Crypto exchanges are prohibited from listing foreign-issued stablecoins like USDT in Japan, but this ban will reportedly be lifted in 2023 for stablecoins that meet specific regulatory standards.
- G.U. Technologies said Japan Open Chain stablecoins would comply with Japanese regulations. G.U. Technologies developed the blockchain, currently in beta testing, in collaboration with Dentsu, Minna Bank, Pixiv, the Kyoto University of the Arts, and Corgear.
- Japanese banks in the test include Tokyo Kiraboshi Financial Group, Minna no Bank, and The Shikoku Bank.
- Each bank will create and release its own stablecoin on the Japan Open Chain, which according to G.U. Technologies can record over 1,000 transactions per second.
- With privately developed stablecoins likely on their way to the east Asian nation, the Bank of Japan is focusing on its central bank digital currency, with a digital yen set for a pilot program in April.
See related article: Japan’s Square Enix to launch Web3 game on Polygon blockchain, cites ‘sustainability’ benefits