DMM Group and Progmat to Launch New Stablecoin in Japan, Targeting Ripple Labs' RLUSD Market Share

Ripple Labs' United States dollar-pegged stablecoin RLUSD has not launched, but it already has a close rival: Japanese financial leader DMM Group.

Japanese financial services giant DMM Group is reportedly planning to launch a new stablecoin in collaboration with Progmat Inc. The stablecoin will be issued under Japan’s digital asset regulations, introduced by parliament in June 2023.

The stablecoin is set to be minted on Progmat Coin’s platform, which complies with Japanese stablecoin issuance and management law. Once issued, the stablecoin will be used as a reserve currency to underpin the project’s treasury pool and serve as a price stabilization mechanism for SMP.

SMP is a soon-to-be-launched digital asset that will be the primary means of payment within Seamoon Protocol and DMM’s larger portfolio of companies. However, it will not be the only means of payment. Users will also be able to use fiat currencies and credit cards to transact on the platform.

Speaking about the stablecoin, DMM Crypto CEO Nagato Kasaki explained the inspiration behind the launch of Seamoon Protocol. “Our goal is to create a space where the global community can experience DMM’s cultural universe and co-create new experiences,” he said. “Our consortium’s ability to create dynamic and dependable digital assets, like the planned stablecoin, will enable that vision to come to life.”

“We are grateful for the collaboration and partnership of the esteemed teams from Progmat, which enabled us to pursue this endeavor.”

This plan comes as the launch of Ripple’s RLUSD gets closer. One of Ripple’s biggest partners is SBI Holdings, a Japanese financial giant. With RLUSD coming, DMM Group may be trying to scoop up a large Japanese stablecoin market share. However, the plans are relatively new, so it’s yet to be seen how far it will go with this new pursuit.

TradFi Launches Stablecoin as Demand Increases

Traditional Finance (TradFi) companies are becoming receptive to crypto-based solutions. For example, PayPal launched PYUSD, an ERC-20-based stablecoin, on the Ethereum blockchain in August 2023. It later listed the stablecoin on the Solana blockchain in May this year.

The stablecoin is designed to facilitate instant cross-border Peer-to-Peer payments, simplify global payments, and enable real-time microtransactions. Like Ripple’s RLUSD, PYUSD is backed by US dollar deposits, treasuries, and similar cash equivalents.

The functionality, stability, robust security, and transparency of these stablecoins are making them attractive crypto offerings. Stablecoins help traders perform seamless transactions and usually don’t attract additional costs beyond the network’s gas fee.

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