Japan-based electronic commerce DMM Group and Progmat have begun a joint exploration into issuing a stablecoin.

DMM.com, along with its affiliate DMM Crypto, is collaborating with Progmat to explore the issuance of a stablecoin.

According to DMM’s press release on Aug. 23, the planned stablecoin will initially be integrated into the Seamoon Protocol, DMM Group’s digital economy project. The goal is to stabilize the Seamoon Protocol’s value, expand its token economy, and ultimately enhance the value of its native token.

The rollout of the stablecoin will occur in three phases. First, the stablecoin will stabilize the Seamoon Protocol’s value. Second, it will be used as a payment method within DMM Group companies. Finally, the stablecoin will enable transactions among registered partners and verified users, such as game players.

DMM’s stablecoin push mirrors Japan’s cashless transition

In the third phase, DMM Group plans to extend stablecoin usage to transactions between whitelist-registered business partners and verified users, including game players, paving the way for broader adoption as a payment solution. DMM Group and Progmat aim to issue the stablecoin by the end of fiscal 2024, with initial issuance and testing conducted on a testnet.

This initiative aligns with Japan’s broader trend of exploring stablecoins as part of the country’s gradual shift towards a cashless society. For instance, Hokkoku Bank recently became the first Japanese bank to launch its own stablecoin, Tochika, which is backed by bank deposits and aims to facilitate digital transactions in a country historically reliant on cash.