Datachain Reaches Revenue-Sharing Agreement with Progmat for Stablecoin Business
November 14, 2024
Datachain Inc. has entered into a revenue-sharing agreement with Progmat, Inc. in relation to the stablecoin business. Under this agreement, Datachain will receive a portion of the revenue generated from stablecoins issued through Progmat’s stablecoin issuance and management platform, “Progmat Coin.”
Through this partnership, Datachain aims to strengthen its collaboration with Progmat to maximize both the issuance and circulation of stablecoins using the “Progmat Coin” platform.
１． Revenue-sharing Agreement
Datachain has been collaborating with Progmat to advance initiatives using the stablecoin issuance and management platform, "Progmat Coin" (*1). Specifically, this partnership has focused on the following areas:
- Developing smart contracts to enable the registration, issuance, and transfer of stablecoins issued on "Progmat Coin" across multiple blockchains, as well as bridging these stablecoins between different blockchains.
- Creating international use cases, such as cross-border payments, leveraging stablecoins issued through the "Progmat Coin" platform.
With this revenue-sharing agreement, Datachain will receive a portion of the revenue generated from stablecoins issued via "Progmat Coin."
Typically, platform providers and software development companies operate in a client-contractor relationship. However, due to Datachain’s joint development role in building the core areas of this stablecoin issuance and management platform, both parties have agreed to this unique revenue-sharing model.
２． Future Outlook
Datachain aims to strengthen its collaboration with Progmat to achieve their shared goal of maximizing both the issuance and circulation of stablecoins issued on the "Progmat Coin" platform.
Reference: Revenue from Stablecoin Issuers
As of October 2024, the global outstanding issuance of stablecoins has reached approximately $170 billion, with Tether's USDT and Circle's USDC accounting for roughly 90% of the market. The largest player, Tether, reported a net profit of $4.52 billion for Q1 2024. The second largest, Circle, achieved revenues of $779 million in the first half of 2023.
According to a Bernstein report, the stablecoin market is projected to grow from $125 billion in 2023 to $2.8 trillion by 2028—an expansion of approximately 22 times, reaching nearly 10% of the current global fiat currency supply.
The report indicates that this growth will be driven by stablecoins operating under national regulations. Currently, stablecoin use is mainly confined to the cryptocurrency sector, but the introduction of regulatory-compliant stablecoins is expected to unlock new revenue opportunities by enabling use in real-world applications, such as B2B and retail payments.
*1:
About Datachain
Datachain is a blockchain startup founded in 2018 that specializes in blockchain interoperability. Its core products include YUI, a Hyperledger Lab that enables interoperability between multiple heterogeneous blockchains via IBC, and LCP, a proxy for light client verification using TEEs. Datachain is also working on an IBC-enabled cross-chain bridge in partnership with TOKI and is involved in several projects with enterprises, focusing on cross-chain technology. For more information about Datachain, please visit https://www.datachain.jp/ .
About Progmat
Progmat is a startup company building digital asset infrastructures that can transform the financial system. With a mission of “Connecting the society with the programmable network and digitizing every value,” Progmat delivers the issuance and administration platform for tokenized securities, stablecoins, and utility tokens, while pursuing partnerships to expand the global use of digital assets. Progmat, as an independent firm backed by several key institutions in national financial markets, also leads the digital assets ecosystem across multiple industries by running the Digital Asset Co-Creation Consortium, which has over 200 member firms. For more information, visit https://progmat.co.jp/en/