Skip to content

Crypto Garage Launches Commercial Service for Settlenet System

June 9, 2020

Japanese blockchain development company Crypto Garage announced that it is launching a commercial service for the OTC cryptocurrency market on its settlenet platform.

According to an update on the Digital Garage website released on June 8th, your company Crypto Garage launches a commercial service for Settlenet, a settlement system that uses Blockstream’s Liquid Sidechain.

Specializing in over-the-counter (OTC) transactions for digital assets for trading companies, crypto exchanges, asset managers and brokers; Settlenet has been under development since January 2019, when Crypto Garage received official approval for a demo version from the Japan Financial Services Agency (FSA).

Crypto Garage Launches Commercial Service for Settlenet SystemCrypto Garage Launches Commercial Service for Settlenet System

“In this demo, we outperformed the proof of concept using a test environment and managed to solve the problem of simultaneously handling real digital assets and funds in Japanese yen on a side chain.” explained the digital garage ad. He submitted a report on the one-year pilot program to the Japanese regulatory authorities in January 2020.

How does the system work?

Blockstream launched Liquid in October 2018 as the first public, production-ready Bitcoin (BTC) side chain that enables fast and secure transfer of digital assets between companies.. The Liquid Network currently has 45 members, including crypto exchanges, market makers, brokers, financial operators and others.

Settlenet uses Liquid as part of a deal that allows exchanges to issue stable coins tied to the Yen and trade against Liquid Bitcoin (L-BTC). The system uses an asset exchange protocol called “Atomic Exchange” in the Liquid Network “to enable the simultaneous exchange of assets between business partners without passing control of the blockchain assets to third parties”. Digital Garage reports an average transaction time of just two minutes.

New regulations for Japanese exchanges

Settlenet is launched at a time when new laws regulating cryptocurrencies apply in Japan. On May 1, updates to the country’s Payment Services Act (PSA) and Financial and Foreign Exchange Instrument (FIEA) Act came into force.

Do not stop reading: