Sony Bank, one of the largest banks in Japan, makes a plan to develop its own stablecoin. The stablecoin will be linked to fiat currencies, like the Japanese yen.

What is Sony Bank planning?

This initiative is ready to occur on the Polygon blockchain. Also, the bank made a partnership with SettleMint which is a blockchain company based in Belgium.

Sota Watanabe who is the founder of Astar Network confirmed this endeavor via a tweet. Moreover, Nikkei, the world’s largest financial newspaper, reported the project yesterday.

The bank aims to explore potential legal concerns related to the transfer of yen-backed stablecoins. It is expected that this experiment will span the next few months.

Sony Bank suggests that the introduction of stablecoins can reduce transaction fees for individual money transfers and payments. Furthermore, it is considering the use of stablecoins as a payment option for businesses utilizing intellectual property owned by Sony Group, including in areas like gaming and sports.

Sony Group’s interest in the Web3 space

This stablecoin experiment is part of Sony Group’s broader engagement with Web3 technologies. Previously, its video game division proposed a patent in March 2023 for a “NFT framework” to facilitate the transfer and utilization of digital assets across gaming platforms, aimed at enhancing gamers’ experiences with in-game assets. Also, Sony Network Communications collaborated with Startale Labs, a Web3 infrastructure developer from Singapore, to develop Sony’s blockchain network in September 2023. The network is expected to launch this year.

Sony’s efforts are in line with Japan’s growing focus on the Web3 industry. In February, the Japanese Ministry of Economy, Trade and Industry revealed intentions to enhance strategic funding for Web3 startups by permitting limited partnership firms to possess and obtain digital assets. This signifies a significant national trend towards adopting Web3 technologies.