* Animoca Brands Japan and RootstockLabs are partnering up to launch Bitcoin-native treasury tools for Japanese companies.
* This partnership could help local companies move beyond holding Bitcoin to actively managing it.
* Rootstock uses merged mining to inherit 80% of the Bitcoin hash power, which means that it is highly secure.
This Tuesday, Animoca Brands Japan and RootstockLabs announced a partnership to bring Bitcoin-native DeFi tools to the Japanese market.
This collaboration is targeted at companies and allows them to use their crypto for more than just storage on a balance sheet.
Bitcoin-Native Tools For Japanese Companies
The main part of this agreement is about bringing Rootstock’s institutional program to Japan.
Many Japanese firms already have crypto as part of their financial strategy for the long term. However, most of them simply keep these assets in cold storage, and nothing more.
As such, Animoca Brands Japan and RootstockLabs want to change this by introducing active management options. Under these options, companies will gain access to tools that are secured by the Bitcoin network’s PoW model itself.
Kensuke Amo, the CEO of Animoca Brands Japan, stated that corporate interest in crypto is rising fast, and his company wants to support this while staying strictly within Japan’s framework.
Merged Mining and the Power of Rootstock
Rootstock works as a sidechain that connects directly to the main Bitcoin network.
It uses a process called merged mining to secure its transactions, which means that Bitcoin miners can secure the Rootstock chain at the same time they mine Bitcoin.
As of writing, over 80% of the total Bitcoin hash power contributes to Rootstock’s security. This design is thus makes the network trustworthy on a different level.
Not only this, but the network also supports smart contracts that are compatible with Ethereum. This allows developers to build Dapps that use Bitcoin as the main asset.
As expected, institutions will find this combination of security and use cases very appealing.
rBTC and the RIF Protocol
The partnership will be focused on two specific assets within the Rootstock ecosystem, including rBTC and the Rootstock Infrastructure Framework (or RIF).
For context, rBTC is a token pegged one-to-one with Bitcoin.
Each rBTC is backed by actual BTC held in a secure bridge called the PowPeg, and it allows businesses to participate in lending or borrowing without ever leaving the security of the Bitcoin network.
In essence, it acts as the “Smart Bitcoin” that handles transactions on the sidechain.
The RIF, on the other hand, is a collection of protocols that makes it easier for developers to build tools and applications. It includes tools for payments, storage, identity management and more.
In other words, by using RIF, Japanese companies can create faster and cheaper applications on top of the Bitcoin network.
Bitcoin Treasury Adoption in Japan
Japan has become a leader in corporate Bitcoin adoption over the years, especially with Metaplanet as its most famous example.
As of writing, Metaplanet holds over 35,000 BTC, which is worth billions of dollars. Other major companies like NEXON Co., Ltd. and Remixpoint have also built large positions with the asset so far and even smaller firms like Anap Holdings Inc. have joined the trend.
Animoca Brands Japan plans to combine these new Bitcoin-native DeFi tools into its own support services.
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