Crypto Garage to issue Yen-backed stablecoin on Liquid sidechain

Crypto development company Crypto Garage has announced it has received regulatory permission to trial its new settlement system using Blockstream’s Liquid sidechain.

In an agency first, Crypto Garage stated: “We have received official authorization to conduct the first blockchain and finance project under the Regulatory Sandbox in Japan.” The regulatory agencies mentioned are managed by the Cabinet Secretariat office of Japan.

Crypto Garage’s stocks are traded on the Tokyo Stock Exchange. Japan is a member of the UN, the OECD, the G7, the G8, and the G20, and is considered a large global power. The adoption of cryptocurrency in Japan has also been on the rise over the last 18 months. Between themselves and South Korea, they are competing not just for the top spot on the global average IQ leaderboard, but also for the highest penetration rate for the adoption of a totally digital lifestyle.

What is Liquid?

Back in October 2018, Blockstream launched Liquid as a fast and private settlement layer using a pegged sidechain.

According to Blockstream, Liquid will deliver faster transaction settlement and privacy above the higher security and decentralisation offered by the base BTC blockchain.

The supply of Liquid BTC (LBTC) will also fluctuate based on the amount of BTC pegged into this sidechain. Users will need to wait for the confirmation of 102 Bitcoin (around 17 hours) to have their LBTC credited.

Project terms

According to the Crypto Garage press release, the duration of the project will be one year. The participating cryptocurrency exchanges will be limited to those with a “Japanese Virtual Currency Exchange License” and the transaction amount will be limited.

In an interesting note, they added: “During the term of the project, Crypto Garage will provide settlement to the participating exchanges for free.”