Sony Bank, a division of the Japanese entertainment and gaming giant, is launching a pilot program to create its own stablecoin on the Polygon blockchain. This move is part of Sony's broader strategy to leverage Web3 technology, including NFTs and its own public blockchain network, to enhance its gaming and sports businesses by reducing fees and enabling smoother transactions.
Sony Bank Embarks on Stablecoin Initiative, Targeting Gaming and Sports
Tokyo, Japan - Sony Bank, a leading financial institution under the Sony Group umbrella, has launched a groundbreaking pilot program to establish its own stablecoin linked to fiat currency. This initiative, conducted on the Polygon blockchain, marks a significant step in Sony's exploration of Web3 technologies and their potential to enhance its core businesses.
The Sony Bank stablecoin pilot, as reported by Nikkei, aims to leverage the advantages of stablecoins, such as reduced payment and remittance fees, to advance the company's intellectual property in gaming and sports. The experiment will focus on addressing legal issues related to the transfer of yen-based stablecoins and is expected to span several months. SettleMint, a Belgian fintech company, will be responsible for developing the stablecoin.
Sony's foray into stablecoins aligns with its broader commitment to Web3 technology. Recently, the company filed a patent application for integrating non-fungible tokens (NFTs) into gaming to enhance asset flexibility for players. Additionally, Sony has partnered with Startale Labs, a prominent developer behind the Astar Network, to establish its own public blockchain network. Startale CEO Sota Watanabe revealed that the project is now in its implementation phase after 18 months of development.
The stablecoin landscape in Japan has witnessed a surge of activity since the introduction of a regulatory framework in June 2022, aimed at protecting consumers following the collapse of TerraUSD. The framework mandates that domestic stablecoins be pegged to the yen or other official tender, ensuring redemption at par value.
This legal clarity has spurred cryptocurrency exchanges and financial institutions to explore the launch of stablecoins in Japan, the world's fourth-largest economy. In September, Binance Japan joined forces with MUFG Bank to investigate the development of fiat-pegged stablecoins. Circle, the company behind the world's second-largest stablecoin, USDC, partnered with SBI Holdings, a major Japanese bank, last November to bring USDC to the Japanese market.
Just this week, Hokkoku Bank, a regional bank in Japan, announced the launch of Tochika, the country's first stablecoin backed by bank deposits. Initially, this digital currency will be accepted at select retail outlets in Suzu City, Ishikawa Prefecture.
The Sony Bank stablecoin pilot adds to the growing momentum surrounding stablecoins in Japan and underscores the potential of these digital assets to reshape the financial landscape. As the experiment progresses, it will be closely watched by industry experts and policymakers alike, as it could pave the way for broader adoption of stablecoins in various sectors, including gaming, sports, and beyond.
