Crypto Garage

Crypto Garage is a fintech joint venture of Digital Garage and Tokyo Tanshi in Japan, for exchanges holding a Japanese virtual-asset license, addressing high counterparty risk, opaque settlement, and poor regulatory visibility in crypto OTC. Its mechanism centers on the SETTLENET suite built on Blockstream's Liquid Network sidechain, letting exchanges issue a yen-pegged JPY-Token and use atomic swap technology with Liquid Bitcoin (L-BTC) for delivery-versus-payment synchronous settlement that removes counterparty risk; the system also gives regulators monitoring of illicit trades including money laundering. The scheme was a blockchain-finance pilot approved under Japan's regulatory sandbox.

Crypto Garage's ecosystem role is bitcoin settlement infrastructure incubated in a regulated sandbox, partnering with Liquid Network federated members and exchanges for enterprise settlement. SETTLENET was a one-year proof-of-concept pilot whose JPY-Token and DvP settlement served participating licensed exchanges; the product's post-sandbox form and availability should be judged from later company disclosures.