Japanese Bitcoin treasury firm Metaplanet released news of a partnership to create a digital credit system using Bitcoin, JPYC’s stablecoin, and security tokens. For this initiative, Metaplanet Securities, JPYC Inc., and Progmat are collaborating. The initiative is designed to investigate blockchain-based credit products, from digital corporate bonds to credit products in general.
Metaplanet Taps Bitcoin & JPYC For Digital Credit Framework
According to a July 10 notice, the collaboration will integrate Metaplanet’s financial strategy based on the Bitcoin network with JPYC’s capabilities to settle stablecoins. In addition, Metaplanet said it will leverage Progmat’s security token infrastructure and Metaplanet Securities’ expertise in structuring and distributing financial products.
Moreover, the study “spans the digital credit domain broadly, ranging from digital corporate bonds to other credit instruments.” It added that the partners will “explore the development of a more efficient and transparent credit market for both issuers and investors.”
Japan’s company bond market is still dominated by big issuers, and administrative costs are the problem for mid-sized and growth companies when it comes to fundraising, the company said. It said digital credit is an ideal candidate for tokenisation because the “interest, redemption, and collateral terms are fixed at issuance.” This will make settlement and recordkeeping easy to access on-chain.
Other Plans Under The Initiative
Metaplanet has also laid out its bigger Bitcoin plan under Project NOVA. They explained, “the Company treats Bitcoin not as a passive treasury holding but as productive collateral on the balance sheet.” Further, it describes BTC as “an asset capable of backing and enhancing the credit of the instruments built on it.”
The proposed collaboration will involve Metaplanet and its securities unit developing digital credit products based on Bitcoin. Meanwhile, JPYC will explore stablecoin issuance, redemption and settlement for bond payments. Also, Progmat will focus on offering a regulated platform for issuance, transfer of rights and management of securities token holders.
The study will also consider the ability of the digital credit product to facilitate “24/7/365 trading and settlement with daily prorated calculation of interest and distributions.”
There is no issuance approval at this stage in accordance with Metaplanet. The companies will first review product design, legal issues, proof-of-concept projects and technical viability before announcing in the future the terms of issuance, the yield, the ways of distribution and launch time.