Japan’s DMM Group, along with subsidiary DMM Crypto, is working with blockchain developer Progmat to explore launching a stablecoin under existing local regulations, according to an August 23 report. statement.
Initially, the stablecoin will be integrated into DMM’s digital economy project, Seamoon Protocol. It will be designed to improve stability and ultimately increase the value of the network’s planned native SMP token.
According to the statement:
“The stablecoin is intended to serve as a reserve currency to support the project’s treasury pool and as a price stabilization mechanism for SMP – a soon-to-be-launched cryptocurrency intended as the primary means of payment within the Seamoon Protocol and DMM’s larger portfolio of companies. .”
DMM Crypto CEO Nagato Kasaki said the planned stablecoin will help the company create an avenue for the global community to experience DMM’s cultural universe and co-create new experiences through the Seamoon Protocol.
Launch in three phases
According to the company, the mainnet launch of the stablecoin will take place in three phases. The first phase of the launch will focus on stabilizing the Seamoon Protocol and the SMP token price by establishing a treasury pool using proprietary stablecoins.
The stablecoin will then be introduced within the DMM ecosystem and serve as a means of payment for transactions between DMM companies and business partners. This could include loan repayment and other uses, expanding the token’s usefulness beyond the Seamoon Protocol.
In the final phase, the stablecoin is made available to registered partners and verified users. It is expected that over time it will become an alternative to credit card payments for these verified users.
Stablecoin growing market
DMM’s initiative comes amid the rapid growth of the stablecoin ecosystem, which has attracted new entrants.
According to CryptoSlate According to data, the total stablecoin market capitalization has risen from just over $100 billion to a new all-time high of around $170 billion in the past seven months, amid improved market conditions.
During this period, the market has witnessed the arrival of major crypto companies like Ripple, who have thrown their hat into the sector, while established players such as Tether’s USDT and Circle’s USDC have scored continued adoption and growth.