Soramitsu Begins Stablecoin Issuance Consulting Business for the Domestic Market
Soramitsu and Soramitsu CBDC have launched consulting and development support services for domestic Japanese business operators. These services support the design, construction, and operation of stablecoin issuance systems in compliance with the Payment Services Act and other regulations.
This service extends the national-scale infrastructure development expertise in central bank digital currencies (CBDC) and stablecoins that the Soramitsu Group has cultivated globally to the Japanese domestic market.
Track Record and International Expansion of "Bakong" Digital Payment System
Soramitsu jointly developed the blockchain-based digital payment system "Bakong" with the National Bank of Cambodia, which began operations in October 2020.
As of the end of 2024, Bakong has achieved rapid growth, serving Cambodia's population of approximately 17 million with 30 million accounts, 600 million annual transactions, and a total transaction value of 22.6 trillion yen (approximately 3.3 times Cambodia's GDP). Approximately 70% of the circulation volume consists of USD-denominated stablecoins, which supported 300 million transactions worth 16.7 trillion yen in 2024 alone.
Subsequently, Soramitsu conducted CBDC proof-of-concept projects with the central banks of Laos, the Solomon Islands, and Papua New Guinea. Additionally, Soramitsu developed a blockchain-based savings bond system for the Ministry of Finance of Palau.
This fiscal year, Soramitsu CBDC will move forward with pilot projects based on the results of these proof-of-concept initiatives, with a view to actual operations in the aforementioned countries. The company is also expanding operations across six or more countries overseas, including new CBDC proof-of-concept work with the Central Bank of Pakistan.
Web3 Technology Platform and Global Expansion
Soramitsu Helvetia AG, a Soramitsu affiliate under Swiss law, developed "SORA Network," which fuses public and permissioned blockchain technologies, and has created issuance and management systems for the USD-pegged stablecoin "Kensetsu USD" and digital assets "XOR," "VAL," and "PSWAP."
The company also has extensive development experience in the Web3 sector, including decentralized exchanges (DEX) such as "PolkaSwap," "Klaytn," and "Tonswap," as well as next-generation DeFi-compatible wallets such as "Fearless Wallet."
Overview of the New Service for the Japanese Market
The new service launching this time provides comprehensive support to Japanese business operators considering stablecoin issuance, from institutional design through system construction to operations.
The core technology adopted is Hyperledger Iroha, originally developed by Soramitsu and currently managed by The Linux Foundation. This technology enables immediate settlement with finality of less than 2 seconds per transaction and achieves processing capacity of thousands of TPS (thousands of transactions per second), and is globally recognized as a high-performance platform optimal for financial transactions such as CBDCs and stablecoins. In Japan, it already has a track record of use by more than 10 companies and local governments.
Examples of Specific Service Offerings
- Regulatory and Risk Advisory: Requirements analysis under the Payment Services Act, AML/CFT (anti-money laundering/counter-terrorist financing) design, scheme development for issuance, redemption, and fund management
- Solution Design: Token models (account-based and token-based), settlement flows, wallet UX, custodial integration design
- Proof-of-Concept and Implementation Support: Rapid PoC and pilot implementation on Hyperledger Iroha, performance and fault tolerance testing
- System Integration: Banking core systems, payment gateways, JPQR compatibility, card/acquirer connections
- Interoperability (SORA Nexus): A global blockchain network based on Hyperledger Iroha that provides private data spaces capable of supporting regulated assets
- Operations and Monitoring: Key management, monitoring, incident response, performance optimization support
Expansion into Cross-Border Payments
Soramitsu will support domestic business operators in realizing low-cost and highly immediate international remittances. The company is also considering connections between Japanese stablecoins and overseas CBDCs or stablecoins, as well as the construction of cross-border payment and remittance systems.
Cambodia's "Bakong" has already completed connection with Japan's JPQR payment network standard. Bakong is already connected with payment networks in Malaysia, Thailand, Vietnam, Laos, and China, enabling cross-border payments at high speed (approximately 10 seconds) and low cost. Future expansion to India, Singapore, Indonesia, and other areas is planned, providing Japanese business operators with diverse options for cross-border payments.
About Soramitsu CBDC
Soramitsu CBDC was established in March 2024. Soramitsu CBDC primarily handles business development and development of CBDC systems and savings bond systems utilizing blockchain for overseas markets, having inherited software assets, intellectual property, business development and development personnel, and expertise and experience long cultivated by Soramitsu. It was spun off from Soramitsu as a separate company.
About Soramitsu
Founded in February 2016, Soramitsu is a globally recognized fintech company providing innovative solutions leveraging blockchain technology in the digital asset management and digital identity fields. Soramitsu's mission is to leverage blockchain technology to drive innovation in industry and solve critical societal challenges.
Norbert Gehrke
