Japanese Fintech Developer to Create Blockchain-Based Bond Market Gateway for Palau
A Japanese fintech developer, Soramitsu, known for its work on a central bank digital currency (CBDC) for Cambodia, is set to build a blockchain-based bond market gateway for Palau. The project aims to launch a trial in 2024 and full roll-out in the following year, enabling the Palauan government to issue bonds to individual investors efficiently.
Cost-Efficient Solution for Palau’s Bond Market
Soramitsu has secured the contract to develop the blockchain-based bond market gateway for Palau at a cost estimated to be several hundred million yen. This expense is less than half of what a non-blockchain alternative would cost, making it a cost-effective solution for the Palauan government. The project has garnered support from Japan’s Ministry of Economy, Trade, and Industry, with strategic guidance from Japan’s foreign and finance ministries.
Soramitsu’s Success in Cambodia and Potential Expansion
Following its successful development of Cambodia’s CBDC in 2020, Soramitsu has gained recognition for its work as the digital currency garnered popularity. With over 10 million accounts opened by December 2023, accounting for 60% of Cambodia’s population, Soramitsu’s reputation has strengthened. Plans for the international expansion of Cambodia’s CBDC through collaborations with UnionPay International and other global partners indicate a promising future for Soramitsu’s fintech developments.
