G.U.Technologies Inc. (Headquarters: Tokyo, Japan, CEOs: Daimei Inaba, Hidekazu Kondo), a leading developer and provider of web3 infrastructure, is pleased to announce the initiation of Proof of Concept experiment in partnership with ORIX Bank Corporation (Headquarters: Tokyo, Japan, CEO: Yuichi Nishigori) to issue stablecoins based on specific trust beneficiary rights in compliance with the provisions of the revised Payment Services Act. This experiment will take place on 'Japan Open Chain', Ethereum-Compatible L1 Blockchain Operated by Japanese Companies.
■ Background of the Experiment
Currently, stablecoins pegged to the US dollar with a total value of approximately $125 billion are circulating worldwide. According to the report by Bernstein, this figure is projected to grow to around $2.8 trillion within the next five years. Stablecoins are increasingly being recognized as a pivotal application that can drive the broader adoption of blockchain technology in society. Ahead of the US and EU, Japan passed new laws on stablecoins on June 1st this year.
This legislation enables the issuance of stablecoins tied not just to the Japanese yen, but also to other major global currencies.
Considering intercompany settlements in Japan are valued at an estimated 1,000 trillion yen annually according to the report by Nikkei, this regulatory shift presents a significant business opportunity for Japanese financial institutions.
In light of this, our company is progressing with proof-of-concept experiments in partnership with domestic banks.
We aim to develop a stablecoin system that emphasizes practical features, such as legal compliance and swift payment processing, ensuring easy integration for financial institutions and money transfer service providers.
Our goal is to create a world where various financial institutions can effortlessly and securely issue their unique stablecoins.
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■ Details of the Experiment
The revised Payment Services Act, enacted on June 1st, allows trust banks and trust companies to issue stablecoins as liquid electronic payment methods.
In our Proof of Concept experiment, we will conduct a technical test with the aim of leveraging the advantages of trust functions to use stablecoins as a convenient electronic payment option and develop a blockchain service that enables free transactions between unspecified users without identity verification.
■ Japan Open Chain ‐ Ethereum-Compatible L1 Blockchain Operated by Japanese Companies -
Japan Open Chain is a fully Ethereum compatible blockchain infrastructure which achieves fast transactions, low fees, high security, and stability. With reputable Japanese companies onboard as validators, this public chain ensures both legal and technical practicality and allows safe and secure use for businesses all over the world.
▼Japan Open Chain Official Website