Metaplanet plans to turn Strategy’s STRC design into a digital credit framework to help the Bitcoin treasury firm and other smaller firms stay out of Japan’s rigid bond market.
To carry out this plan, called Project Nova, the firm has partnered with Metaplanet Securities, stablecoin issuer JPYC and tokenization firm Progmat.
According to the arrangement, the Bitcoin-backed digital lending framework will use Metaplanet’s BTC assets (currently 43 thousand coins) as collateral.
However, unlike STRC, which only pays returns published by Strategy, other mid-sized and fast-growing firms in Japan can benefit from this platform. They can issue their own tokenized digital loans to investors. Think of it as an open market where other firms can extend their loans directly to investors.
The study aims to investigate the possibilities of 24-hour trading and daily interest rate settlement. Pointing out the importance of the project, Metaplanet CEO Simon Gerovich said:
This is Project NOVA in action: using the power of Bitcoin as an asset to open Japan’s credit markets to companies priced out by the current system.
The company started this year started a venture capital firm and asset management subsidiaries. The initial investment was made in JPYC, a regulated stablecoin issuer in Japan and a Project Nova partner. Subsidiaries are intended to be at the center of digital credit and BTC capital markets.
Four months later, the latest study on a white-label platform for BTC-backed digital lending now reveals the firm’s aggressive long-term BTC plan. The movement is also Japan’s Crypto ETF review approves.
Evaluating Bitcoin’s digital credit market
BTC digital credit, pioneered by Michael Saylor Strategy, refers to debt instruments such as preferred shares (like Stetch (STRC)) or convertible loans backed by the firm’s crypto assets.
Metaplanet and Bitmine (the world’s largest Ethereum treasury) are exploring STRC-like tools for further crypto accumulation.
Interestingly, STRC faced a problem. market shortage and a confidence test after breaking out of the $100 target level. Despite the fixation, volumes remained strong with buyers picking up the stock at its lows.
According to a report by Bitcoin Treasuries, STRC earned approximately $9 billion in June. In fact, the stock has since recovered to approach $100, underlining renewed confidence in the BTC digital credit.
It is unclear how the Japanese market will receive BTC-backed digital loan schemes. Meanwhile, Metaplanet’s shares rose 4% following the update.
Final Summary
- Metaplanet is evaluating the feasibility of launching an open market for BTC-backed digital credit for Japanese small firms.
- It remains to be seen whether regulators and the market in Japan will embrace the plan.
