DMM Group Partners With Progmat to Explore Stablecoin Launch Under Existing Local Regulations

Initially, the stablecoin will be integrated into DMM's digital economy project, Seamoon Protocol. It will be designed to enhance stability and

Japanese entertainment conglomerate DMM Group is partnering with blockchain developer Progmat to launch a stablecoin under existing local regulations, the company announced on Aug. 23.

The stablecoin will initially be integrated into DMM’s digital economy project, Seamoon Protocol, to enhance stability and boost the value of the network’s planned native SMP token.

“The stablecoin is intended to serve as a reserve currency underpinning the project’s treasury pool and a price stabilization mechanism for SMP—a soon-to-be-launched cryptocurrency intended to be the primary means of payment within Seamoon Protocol and DMM’s larger portfolio of companies,” the statement reads.

According to DMM Crypto CEO Nagato Kasaki, the planned stablecoin will enable the firm to create an avenue for the global community to experience DMM’s cultural universe and co-create new experiences together through the Seamoon Protocol.

The stablecoin’s mainnet launch will occur in three phases, the company outlined.

The first phase will focus on stabilizing the Seamoon Protocol and its SMP token price by setting up a treasury pool using proprietary stablecoins.

Next, the stablecoin will be introduced within the DMM ecosystem, serving as a payment method for transactions between DMM companies and business partners, such as loan repayments and other use cases, expanding the token’s utility beyond the Seamoon Protocol.

Finally, the stablecoin will be made available to registered partners and verified users. Over time, it is expected to become an alternative to credit card payments for these verified users.

DMM’s initiative comes amid the rapid growth of the stablecoin ecosystem, which has attracted new entrants and set up several key players for major gains in 2023.

According to CryptoSlate data, stablecoin’s total market capitalization has surged from just over $100 billion to a new all-time high of around $170 billion within the past seven months.

During this period, the market has seen the entrance of major crypto firms like Ripple, which have thrown their hats into the sector, while established players such as Tether’s USDT and Circle’s USDC have scored continued adoption and growth.

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