Sony Bank CONNECT: Japan's Active Engagement in the NFT Sector

Despite a global downturn in the market for non-fungible tokens (NFTs), Japan remains actively engaged in the sector.

Major Japanese bank Sony Bank is continuing to push into the Web3 space with the launch of its NFT collection and trading app, called Sony Bank CONNECT. The new app allows users to collect NFTs that are received through promotional activities. Users can also set their favorite NFTs or collections as their phone’s home screen and create gallery-style rooms for their NFTs.

The launch of the Sony Bank CONNECT app faced some initial setbacks, with users experiencing problems not receiving SMS messages that were required for registration. Despite these initial issues, Sony Bank was able to quickly address and resolve the problem, ensuring a smoother experience for its clients.

Sony has a major advantage in the NFT market thanks to its vast intellectual property (IP) assets, courtesy of its subsidiaries like Sony Pictures, Sony Music, and Sony PlayStation. This extensive IP portfolio provides Sony with numerous opportunities to create unique and valuable NFTs. However, Sony’s approach to NFT rights contrasts with some of the most popular NFT collections, such as the Bored Ape Yacht Club (BAYC), which allow users considerable freedom to commercialize their NFTs. Sony’s terms and conditions are much more restrictive in comparison.

The Sony Bank CONNECT app is integrated with the Sony Group’s NFT marketplace, called SNFT. This marketplace operates on the Polygon public blockchain, distinguishing it from some security tokens that utilize private blockchains to align with regulatory preferences. SNFT also collaborates with various events and artists, providing NFTs as rewards. For example, earlier this year, Sony Bank participated in a US $1 million green finance security token issuance using the Securitize private blockchain. Investors who responded to a survey regarding this initiative were rewarded with NFTs.

Some applications attempt to simplify the user experience by hiding blockchain functionalities such as gas fees, but SNFT opts for transparency. It does, however, facilitate user access by allowing on-ramping with credit cards.

Looking ahead, Sony Bank has plans to issue stablecoins on the Polygon blockchain. Additionally, a Sony group subsidiary recently acquired Amber Japan, a cryptocurrency exchange, subsequently rebranding it as S.BLOX. This acquisition further underscores Sony’s commitment to expanding its presence in the cryptocurrency and blockchain sectors.