Japan’s DMM Group, along with its subsidiary DMM Crypto, is partnering with blockchain developer Progmat to explore the launch of a stablecoin under existing local regulations, according to an Aug. 23 statement.
Initially, the stablecoin will be integrated into DMM’s digital economy project, Seamoon Protocol. It will be designed to enhance stability and ultimately boost the value of the network’s planned native SMP token.
According to the statement:
“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.”
DMM Crypto CEO Nagato Kasaki said the planned stablecoin will help 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.
Three phase launch
According to the firm, the stablecoin’s mainnet launch will occur in three phases. The first phase of the launch will focus on stabilizing the Seamoon Protocol and its SMP token price by establishing a treasury pool using proprietary stablecoins.
Subsequently, the stablecoin will be introduced within the DMM ecosystem, serving as a payment method for transactions between DMM companies and business partners. This could include loan repayments and other uses, expanding the token’s utility beyond the Seamoon Protocol.
In the final phase, 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.
Stablecoin growing market
DMM’s initiative comes amid the rapid growth of the stablecoin ecosystem, which has attracted new entrants.
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 amid improved market conditions.
During this period, the market has witnessed 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.
