Bittime - Sony Bank, the banking division of Japanese entertainment and gaming giant Sony Group, is trialling the issuance of its own stablecoin. This trial, reported by Nikkei and The Block, aims to explore the potential of stablecoins in promoting Sony's intellectual properties in the gaming and sports fields.
Yen-Based Stablecoin on the Polygon Network
The trial uses the Polygon blockchain network and the stablecoin will be pegged to a fiat currency, most likely the Japanese Yen. The decision to use Polygon was based on the network's advantages in terms of lower transaction and remittance fees.
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Evaluation of Legal Aspects and Collaboration with SettleMint
According to the Nikkei report, Sony's stablecoin experiment will not only focus on developing the technology, but will also evaluate legal aspects related to the transfer of stablecoins pegged to the Yen. This trial is expected to last for several months and development will be handed over to the Belgian blockchain company, SettleMint.
Sony Active in Web3 Development
Sony Bank's move to issue stablecoins is in line with Sony Group's active development in the Web3 realm. Last month, Sony's video game division filed a patent to utilize NFTs (Non-Fungible Tokens) in their games. With NFTs, players will have more flexibility in using the digital assets they earn in the game.
In addition, Sony Group is also working with Startale Labs, the core developer of Astar Network, to build Sony's own public blockchain network. Startale CEO, Sota Watanabe, told The Block that the project has now entered the execution stage after a year and a half of development.
Also read: Web3 is starting to look at conventional games
Stablecoin Regulation in Japan and Steps of Other Players
This stablecoin trial by Sony Bank was also influenced by the stablecoin regulations that came into effect in Japan in June last year. The regulations aim to protect users after the collapse of TerraUSD. These regulations require that local stablecoins must be pegged to the Yen or other fiat currency, and holders can exchange them at face value.
Since then, crypto and financial companies in Japan have begun to actively explore the issuance of stablecoins. Last September, Binance Japan partnered with local bank MUFG to study the issuance of stablecoins pegged to fiat.
USDC issuer Circle also partnered with Japanese banking giant SBI Holdings last November to examine the possibility of circulating USDC, the world's second-largest stablecoin, in Japan.
Earlier this week, Hokkoku, a regional bank in Japan, announced the launch of Tochika, Japan's first stablecoin backed by bank deposits. This stablecoin will be used in certain retail stores in Suzu city, Ishikawa prefecture.
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Strategic Steps
The stablecoin trial by Sony Bank is a strategic step to harness the potential of blockchain technology in their business. In addition, this move also shows the growing interest of Japanese companies in digital financial innovation, especially stablecoins.
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Read Also:
What are Stablecoins and How Are They Different from Fiat?
How to Buy Stablecoins in Four Easy Steps
Stablecoin Algorithm: Stable Digital Money Innovation
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