Japan's Metaplanet Launches Digital Credit System Powered by Bitcoin

Metaplanet Securities has partnered with JPYC Inc. and Progmat to create a digital credit system in Japan, leveraging Bitcoin and stablecoins to improve financial inclusion.

The initiative aims to investigate blockchain-based credit products, including digital corporate bonds and other credit instruments, to make the credit market more efficient and transparent for both issuers and investors.

The Japanese company bond market is dominated by large issuers, with administrative costs hindering mid-sized and growth companies from fundraising. Metaplanet believes that tokenisation can solve this problem, as interest, redemption, and collateral terms are fixed at issuance, making settlement and recordkeeping easy to access on-chain.

The partnership will involve Metaplanet developing digital credit products based on Bitcoin, while JPYC will explore stablecoin issuance, redemption, and settlement for bond payments. Progmat will focus on offering a regulated platform for issuing, transferring, and managing securities tokens.