DeCurret, operator of tokenized deposit network DCJPY, has outlined its plans to release commercial use cases for its platform before the end of 2024 after the successes of several pilots.
The operator made the disclosure via a white paper detailing a blueprint for the commercialization of the product. The blockchain based platform has been experimenting with innovative use cases involving non-fungible tokens, carbon credits, and retail in-store usage.
“As a result, our product, which issues and manages the digital currency DCJPY and enables business transactions on digital platforms, has reached a practical level and can convey a more concrete image of social implementation than the previous paper,” read the report.
In its first real-world use case, the project will be partnering with GMO Aozora Net Bank (NASDAQ:AOZOF) and Internet Initiative Japan (IIJ) (NASDAQ:IIJIF) to float digital assets representing values from the Japan Electric Power Exchange (JEPX).
DeCurret has been spearheading efforts with over 100 Japanese entities exploring use cases for blockchain-based settlement and tokenization, raising over $62 million in funding. Four of the largest Japanese commercial banks participated in the funding round, with initial experiments revolving around the institutional use case.
Despite the participation from leading financial and technological institutions, the report did not mention the joint effort; rather it focused on consumer use cases for the technology.
While it is easy to see DCJPY as a digital currency, the white paper describes multiple tokenization use cases, allowing businesses to issue tokens on separate digital ledgers. The paper mentions the application of tokenization in securities, non-fungible tokens (NFTs), and the metaverse.
“DCJPY has been developed on the premise of a multi-bank system in which multiple banks use a common settlement infrastructure (Financial Zone),” remarked Toshihide Endo, senior adviser at the Digital Currency Forum.
“Business entities using the Business Zone will be able to conduct transactions using the Business Zone without being aware of their bank, creating an organic connection among the customers of each bank and expanding the network geometrically,” Endo added.
Stablecoin regulations fail to take the shine
DeCurret began its explorations amid a ban on stablecoin issuance, but in mid-2023, Japanese authorities lifted the lid to allow financial institutions to issue stablecoins.
DeCurret Director Eijiro Katsu downplayed the possibility of new stablecoin projects taking the shine away from DCJPY, pointing to the potential of transparency, traceability, and “instant settlements.”
Mitsubishi UFJ Financial Group’s (MUFG) (NASDAQ:MBFJF) stablecoin issuance platform, Progmat Coin, gathered significant steam in recent months, onboarding a handful of key players, including Mizuho Financial Group.
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