Tokyo-based fintech firm Simplex Corporation and Avalanche blockchain creators Ava Labs have successfully tested a new stablecoin system aimed at achieving financial service-level availability and low latency.
Testing Objectives
The testing aimed to achieve two main objectives. The first was to ensure that stablecoin transfers are highly reliable and processed quickly. The second was to confirm that business applications continue to function smoothly once transactions are completed on the blockchain.
Tools Used
Several key tools were utilized for the testing:
* Simplex Stablecoin handled the issuance and redemption of stablecoins and conducted remittance transactions on the blockchain. * Simplex Fourth controlled private keys and securely signed remittance transactions. * AvaCloud provided a managed blockchain service to build and run high-performance networks. * A custom AvalancheL1 network was created with additional features such as webhooks, operating on Avalanche's consensus algorithm.
Results and Future Plans
The test results showed strong performance and reliability. The system processed over 1,000 transactions per second in a certain timeframe, with an average transaction finality time of just under one second. The system performed well with backups across multiple regions, exhibiting good throughput and consistent processing under heavy loads. Both firms intend to continue experimenting with specific use cases to further develop the system and onboard more businesses.
The collaboration between Simplex and Ava Labs aligns with Japan's broader efforts to integrate stablecoins into the financial system, as evidenced by recent initiatives like the launch of a stablecoin by Sumitomo Mitsui Financial Group.
