Joint promotion of digital assets for environmental value & digital currency settlement using blockchain

With the announcement earlier this week that the DeCurret DCP network has been moved into production for pre-launch testing, with the intent to start “environmental value trading” in August, let us look back at the original announcement from October 2023 to see what exactly has been proposed.

DeCurret DCP, GMO Aozora Net Bank, and Internet Initiative Japan agreed to jointly promote the first commercial service using the DCJPY Network (a two-tier digital currency platform) provided by DeCurret DCP. This service will utilize the digital currency DCJPY issued by GMO Aozora Net Bank for the digitization of environmental value (non-fossil fuel certificates, etc.) transactions conducted by IIJ, and for transactions and settlements using the digital currency DCJPY. The service was originally targeted to launch in July 2024.

IIJ has joined the Japan Wholesale Electricity Market (JEPX) as a Non-Fossil Value Trading Member and has begun offering a service to procure non-fossil fuel certificates on behalf of customers. In August 2024, IIJ will start using the DCJPY Network provided by DeCurret DCP for this service to digitize environmental value into digital tokens and to settle payments using the digital currency DCJPY. In this system, environmental value transactions will be managed on a blockchain, and GMO Aozora Net Bank will provide an efficient digital currency settlement service linked to the blockchain.

The digitization of environmental value using blockchain technology is attracting attention from many companies working towards carbon neutrality. Currently, environmental value trading in Japan generally involves the issuance of analog certificates such as non-fossil fuel certificates and the management of transaction information on centralized systems. However, the DCJPY Network enables the issuance and transfer of environmental value as digital assets, and automated settlement through programmed transactions using digital currency and smart contracts. In the future, we will also promote the circulation of the entire environmental value trading process on the blockchain by inviting the participation of electric power retailers, power generation companies, environmental value exchanges, and other stakeholders.

The DCJPY Network provided by DeCurret DCP digitizes bank deposits on the blockchain (tokenized deposits), unlike stablecoins. Since DeCurret DCP is a Funds Transfer Service Provider, companies can send and receive the digital currency DCJPY without obtaining or registering for financial licenses related to settlements. Because DCJPY is managed and held by banks, it can also be used for large-value settlements between corporations. In addition to environmental value tokens, programs can be implemented for each area, such as NFTs and security tokens. This allows DeCurret DCP to provide services tailored to the needs of individual companies and organizations, supporting a wide range of businesses using blockchain.

GMO Aozora Net Bank is strengthening its BaaS (Banking as a Service) proposals, including the provision of banking APIs with the largest lineup in Japan and various banking functions as components based on its high technical, development, and mobility capabilities. By providing BaaS to various partner companies, GMO Aozora Net Bank aims to maximize the value of financial services and evolve the way financial services are provided in Japan. They are positioning this initiative as a new area of development in their BaaS business and have decided to issue the digital currency DCJPY for the first time commercially.

Starting with this initiative by IIJ, DeCurret DCP and GMO Aozora Net Bank will support many companies and organizations in utilizing blockchain technology. They will continue to be a catalyst for promoting a DX society through the use of blockchain, and contribute to the businesses of a wide range of industries and companies.

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