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DeCurret DCP, a Japanese digital currency startup, has announced that production testing for its tokenized platform DCJPY has started. Production starts in August.
DeCurret first announced the platform in October 2023 in partnership with the Internet Initiative Japan (IIJ) and GMO Aozora Net Bank. The former is an internet services and network solutions provider, while the latter is a local lender with 19 branches in Japan.
Under DCJPY, IIJ will join the Japan Electric Power Exchange (JEPX), where it will purchase renewable energy certificates for its data center clients. It then converts these into digital tokens for faster and more efficient processing. All the payments are settled in tokenized deposits held by Aozora Bank (NASDAQ: AOZOF)—in this case, represented by DCJPY tokens.
Environmental value trading was the perfect market to target as an initial use case for the project. For starters, with climate change mitigation being top of the priority list for most nations, the sector is receiving widespread buzz and investment. Second, the sector involves tedious paper-based processes, which make it slow, costly, and generally inefficient.
On the DCJPY network, users can settle paperless transactions quickly and conveniently. Additionally, an atomic settlement on the blockchain eliminates settlement risk as all the transactions are simultaneous. Smart contracts add to the convenience, allowing users to automate the process.
While the pilot consists of IIJ purchasing the certificates on an exchange, DeCurret intends to expand the platform in the future to include the entire value chain, from power generators and energy retailers to other exchanges beyond JEPX.
DeCurret has received licensing to provide funds transfer services from Japanese authorities. This means that its clients, including on the DCJPY network, can send and receive digital currencies on its platforms without obtaining additional licenses.
On the tech side, DCJPY consists of two separate but interoperable networks—the business and financial zones. The former is where the participating companies develop and deploy their applications. It’s also where the instructions to transfer the tokenized deposits are recorded. However, the actual transfer happens in the financial zone, where all the banks and payment firms conduct their business.
DeCurret is one of several digital token and blockchain initiatives that have sprung up in Japan to leverage the country’s elaborate regulatory framework. Whether it is NFTs to tackle the country’s aging crisis, provide digital identity in banking, tackle certificate forgery or tokenize real estate, Japan is going all-in on blockchain technology. The country has also seen a rising number of stablecoin projects, with Nomura, Sony Bank, Hokkoku Bank, and MUFG (NASDAQ: MUFG) among those that have announced new projects this year.
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