Crypto Garage To Apply Liquid Sidechain In Calculations
Crypto Garage, a company from Japan that develops blockchain products, has announced the receipt of permission from regulators to test the payment system employing Blockstream's Liquid Sidechain, Cointelegraph reports.
Crypto Garage claims that it was the first project related to blockchain technology to receive permission from regulators to work in accordance with the regulatory framework of the Japanese government. The company will conduct an experiment with a group of crypto exchanges during a year.
The product, called Settlenet, uses Liquid as part of the agreement, which will allow trading platforms issue stablecoins pegged to yen and trade in pair with Liquid Bitcoin (L-BTC), Blockstream sidechain token. Settlenet will use the so-called “atomic swaps”, which will enable transactions between blockchains without asset conversion.
The Settlenet solution will ensure a fast, secure, and confidential transfer of digital assets and will provide regulatory financial organizations with the ability to track any manifestations of illegal trading, including laundering of funds, as follows from a press release of Crypto Garage.
Blockstream launched Liquid Sidechain in October 2018. Initially, it was aimed at improving the work of crypto exchanges and other companies of the crypto sphere and reducing the time for conducting transactions with large volumes.
As previously reported, FSA of Japan should approve or reject applications for a license from seven crypto exchanges within two months.