Partnering with Progmat, DMM plans a stablecoin under Japan’s new digital asset laws.
The new stablecoin will support Seamoon Protocol’s treasury and digital payments.
DMM’s stablecoin launch sets the stage for competition with Ripple’s RLUSD in Japan.
As Ripple Labs prepares to launch its dollar-pegged stablecoin RLUSD, Japan’s DMM Group is stepping into the spotlight with its own stablecoin initiative. In partnership with Progmat Inc., DMM Group plans to debut a stablecoin under Japan’s newly established digital asset regulations. The Japanese parliament introduced these regulations in June 2023.
Stablecoin to Support Seamoon Protocol’s Treasury
The upcoming stablecoin, yet to be named, will be minted on Progmat Coin’s platform and comply with Japan’s stringent stablecoin issuance and management laws. Once launched, this stablecoin will serve as a reserve currency, providing stability for Seamoon Protocol’s treasury pool. This soon-to-be-released digital asset will be a primary payment method within DMM’s extensive portfolio of companies.
DMM’s Flexible Payment Ecosystem
The platform would also allow users to transact with fiat currencies and credit cards, offering a flexible and inclusive payment ecosystem. This diversified payment strategy aligns with DMM’s vision to create a global community platform that blends cultural experiences with cutting-edge financial technology.
Vision for Seamoon Protocol
DMM Crypto CEO Nagato Kasaki emphasized the broader goals behind the Seamoon Protocol, stating:
Our consortium’s ability to create dynamic and dependable digital assets, like the planned stablecoin, will enable that vision to come to life. We are grateful for the collaboration and partnership of the esteemed teams from Progmat, which enabled us to pursue this endeavor.
Ripple’s RLUSD and Broader Stablecoin Trends
As reported earlier by CryptoTale, Ripple’s RLUSD, currently in beta on the XRP Ledger and Ethereum mainnet, is designed to meet the rising demand for stablecoins that offer trust, stability, and transparency. Pegged 1:1 to the US dollar, RLUSD is fully backed by US dollar deposits, short-term US government treasuries, and other cash equivalents. Ripple’s initiative reflects a broader trend in the financial industry, as traditional finance companies increasingly adopt crypto-based solutions.
Ripple’s RLUSD Website: Signal of Ending SEC Legal Battles? Stablecoin Launch Sparks Competition
With the launch of RLUSD imminent, DMM Group’s entry into the stablecoin market could spark competition, particularly in Japan, where Ripple’s strong partner, SBI Holdings, holds significant influence. DMM Group’s strategy appears poised to capture a share of Japan’s growing stablecoin market, though the full impact of these plans remains to be seen.
As traditional finance (TradFi) companies like PayPal also embrace stablecoins, the market is rapidly adopting due to the advantages these digital assets offer. The merits include instant cross-border payments, simplified global transactions, and real-time microtransactions. The competition between Ripple and DMM Group highlights the increasing importance of stablecoins in the evolving digital finance landscape.
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