We will examine the impact of price fluctuations, the process of converting to fiat currency, and the verification flow.

STANDAGE Co., Ltd. (Headquarters: Minato-ku, Tokyo; President and CEO: Akinori Adachi; hereinafter "STANDAGE") will begin a joint proof-of-concept experiment (hereinafter "this experiment") with Bittrade Co., Ltd. (Location: Minato-ku, Tokyo; President and CEO: Lei Seki; hereinafter "Bittrade") to verify the practical challenges of utilizing crypto assets in the trade sector.

This demonstration will focus on the price fluctuation risks, the conversion of crypto assets into fiat currency through sales, and the verification flows related to deposits and withdrawals that are anticipated when corporations utilize crypto assets in the trade sector.

BitTrade, as a cryptocurrency exchange, is responsible for spot trading (buying and selling) of cryptocurrencies, confirmation of deposits and withdrawals, and verification of the conversion process. STANDAGE, based on its expertise in the trade sector, is responsible for organizing practical trade issues and operational issues assuming corporate practices.

Please note that this demonstration is conducted by Bittrade and STANDAGE within the scope of their respective roles, and does not involve the two companies jointly undertaking cryptocurrency or fund transfers, payment processing, or collection of payments.

Background of this demonstration

Bank transfers via foreign exchange are widely used for financial transactions related to trade. While bank transfers are a common method of remittance, depending on the transaction terms, the destination country, and the transfer route, it may take time for the funds to arrive, and various fees may be incurred. Furthermore, practical limitations may arise depending on the recipient's available bank accounts and receiving routes.

As one option to address these trade-related challenges, the possibility of using stablecoins, which are cryptocurrencies designed to stabilize their prices, is being discussed. However, cryptocurrencies carry price fluctuation risks, and for corporations to use them in practice, various issues need to be addressed, such as the effort and costs involved in selling and exchanging them, and the verification flow for deposits and withdrawals.

This demonstration will focus particularly on price fluctuation risk and the process of converting to fiat currency among these challenges. The aim is to examine the flow from confirmation of cryptocurrency deposits to spot transactions (buying and selling) and the reflection of the sale in yen-denominated balances, and to organize the practical challenges and possibilities of using cryptocurrencies in the trade sector.

Main items to be verified in this demonstration

In this demonstration, we plan to examine the following items in order to clarify the practical issues that arise when using crypto assets in the trade sector.

- Time required for the process from cryptocurrency deposit confirmation to conversion to fiat currency
- Price difference between the time of inventory confirmation and the time of sale agreement
- Effort and cost involved in converting to cash through spot transactions (buying and selling).
- Confirmation flow for deposits and withdrawals
- Prescribed confirmations based on laws and regulations and internal company rules
• Operational challenges when using crypto assets in corporate practice

Through these verifications, we will organize the impact of price fluctuations in cryptocurrency transactions and the practical challenges related to converting them to fiat currency, and examine the potential of using cryptocurrency in the trade sector.

The role of BitTrade

As a cryptocurrency exchange operator, Bittrade will verify the operational flow in this demonstration, including the confirmation of cryptocurrency deposits, the process of converting to fiat currency through spot trading (buying and selling), and the reflection of the converted balance in yen.

This will allow us to examine the potential impact of price fluctuations, the effort and cost involved in converting crypto assets to fiat currency, and the time required, thereby clarifying operational issues in corporate practice.

The role of STANDAGE

STANDAGE will leverage its expertise in trade practices, overseas market development, and the digitalization of trade operations to identify challenges in the trade domain and to clarify operational issues based on corporate practices in this demonstration project.

Furthermore, we will collaborate with BitTrade to examine the practical challenges that may arise when corporations utilize crypto assets in the trade sector, from the perspectives of price fluctuation risk, conversion to fiat currency, and verification flows.

Future developments

Through this demonstration, we will verify the practical challenges and possibilities of using crypto assets in the trade sector. In the future, as the verification progresses, we plan to organize and publish the results regarding the time required for the process from crypto asset deposit confirmation to conversion to fiat currency, the impact of price fluctuations, the effort and cost involved in conversion, and the verification flow required in practice.

Through this demonstration, Bittrade will verify the practical challenges and possibilities of using crypto assets in the trade sector. Moving forward, based on the results of this demonstration, we will continue to research and consider the use of crypto assets in corporate practices under an appropriate operational system based on laws and regulations and internal rules.

*This press release is intended to inform you about the implementation of this demonstration and does not indicate or guarantee the launch of any specific service.

About STANDAGE Co., Ltd.

Established in March 2017, the company's vision is "to create a world where all countries have equal access to all goods." It develops a new trade settlement system utilizing blockchain and stablecoins that enables the safe, secure, and inexpensive simultaneous exchange of "goods" and "payments" regardless of region or country. Seeing emerging markets, particularly Africa, as its main market, the company established a base in Nigeria shortly after its founding and began developing trade operations with Africa. Beyond trade settlement, it develops and provides systems that realize digital transformation across the entire trade sector, including sales channel development, order placement and processing, and international logistics. Furthermore, it supports the overseas expansion of small and medium-sized enterprises (SMEs) to increase the number of new domestic trade players.

Company Name: STANDAGE Co., Ltd.
Representative: Akira Adachi, Representative Director and CEO
Address: Sumitomo Fudosan Landmark Plaza 3F, 1-6-7 Shibakoen, Minato-ku, Tokyo 105-0011, Japan
Capital: 367 million yen
Main business activities: Development and provision of digital trade platforms and provision of trade agency services for small and medium-sized enterprises.
URL:https://standage.co.jp/

About BitTrade Co., Ltd.

BitTrade has leveraged its strengths in blockchain technology and security systems to provide technical support to various businesses.

Service name: BitTrade
Operating company: BitTrade Co., Ltd.
Cryptocurrency exchange business: Kanto Local Finance Bureau Director No. 00007
Type 1 Financial Instruments Business Operator: Kanto Local Finance Bureau Director (Financial Instruments) No. 3295
Member association: Japan Crypto Asset Trading Association
Contact information:https://bittrade.zendesk.com/hc/ja/requests/new
Official website:https://www.bittrade.co.jp/ja-jp/
Official X:https://x.com/BitTrade_jp

 

[Important Notes Regarding the Use of Cryptocurrencies]

Cryptocurrencies are not "legal tender" whose value is guaranteed by a country, like the yen or the dollar. They are electronic data exchanged over the internet.

If you lose the private key used for cryptocurrency transactions, you may be unable to access your cryptocurrency holdings and may lose their value.

Cryptocurrencies may lose their value if the blockchain or other transfer record mechanisms fail.

• While we manage our customers' assets separately from our own, in the event of our bankruptcy, we may not be able to return any deposited assets.

Crypto assets can only be used for payment with the consent of the recipient.

Cryptocurrencies can fluctuate in price. There is a risk of incurring losses, such as a sharp drop in price or the cryptocurrency suddenly becoming worthless.

Cryptocurrency exchange businesses are required to register with the Financial Services Agency and the Regional Finance Bureau. Our company is a registered cryptocurrency exchange business.

When trading cryptocurrencies, please receive an explanation from us, fully understand the transaction details, and make your own judgment.

[Explanation of risks related to leveraged trading]

Leveraged trading allows you to trade amounts larger than the funds you deposit as margin, making it highly efficient and potentially generating large profits relative to your capital. However, fluctuations in the leveraged trading indicator (the price of cryptocurrency) can also lead to significant losses, potentially exceeding your initial margin.

Leveraged trading involves a spread (price difference) between the buy price (ASK) and the sell price (BID). During periods of rapid market changes or significant liquidity declines, the spread may widen, or order acceptance may be suspended, potentially preventing you from executing your intended trades.

- There may be a difference (slippage) between the price displayed on the trading screen at the time of order placement and the actual price at which the trade is executed. This can occur due to the communication environment between your device and our trading system, as well as the time required for our system to process your order after receiving it due to sudden market changes, and may work to your advantage or disadvantage.

• Position management fees may be incurred when trading.

[Risk Warning]

https://www.bittrade.co.jp/about/risk/

Cryptocurrency exchange operator, Kanto Local Finance Bureau Director No. 00007

Financial Instruments Business Operator, Kanto Local Finance Bureau Director (Financial Instruments) No. 3295

Member of the Japan Crypto Asset Trading Association

Contact information: https://bittrade.zendesk.com/hc/ja/requests/new