Japan's Payment Giant TIS Embraces Blockchain with Avalanche Multi-Token Platform
Japan's leading payment infrastructure provider, TIS, has launched a new blockchain-based platform in collaboration with Ava Labs, the creators of the Avalanche blockchain. This initiative aims to facilitate the issuance, settlement, and management of digital assets, including stablecoins and tokenized assets, aligning with Japan's Payment Services Act. The move signifies a growing trend of traditional financial institutions in Japan adopting blockchain technology to enhance existing systems.
Key Takeaways
- TIS, a major player in Japan's payment sector, has launched a multi-token platform on the Avalanche blockchain.
- The platform is designed to support stablecoins and tokenized assets, adhering to Japanese regulations.
- This collaboration aims to leverage Avalanche's enterprise-focused solutions for scalability and performance.
- The initiative could pave the way for broader digital finance adoption in Japan, including potential CBDC testing.
Upgrading Financial Infrastructure
TIS, which processes approximately $2 trillion annually through its PAYCIERGE payment system, is bringing its significant scale to blockchain technology. The new Multi-Token Platform, built on AvaCloud, Avalanche's enterprise-grade blockchain builder, is set to transform traditional payment systems into programmable financial infrastructure. This platform will offer TIS and its partners a dedicated layer-1 network with advanced controls over privacy, governance, and performance.
Driving Digital Asset Adoption
The launch comes at a time of increasing momentum for stablecoins and tokenized assets in Japan. The platform's capabilities are designed to meet the stringent demands of Japan's financial sector, with Ava Labs stating the system can handle over 50,000 transactions per second with near-instant finality. This robust performance is expected to support various use cases, such as real-time settlements and embedded finance.
Global Ambitions
Isao Otokita, managing executive officer at TIS, expressed the company's intention to collaborate with a wide range of entities, including financial institutions, corporations, and government agencies. The goal is to promote the global adoption and ecosystem development of this advanced financial infrastructure, originating from Japan. Ava Labs CEO Nick Mussallem highlighted that this effort could become the foundation for Japan's broader transition towards a digital financial system, potentially including central bank digital currency (CBDC) testing in the future.