Sony Bank Breaks New Ground with Polygon Stablecoin Trial

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Sony Bank, a subsidiary of the Japanese gaming and entertainment conglomerate, has commenced a proof-of-concept initiative targeted at issuing its stablecoin tied to fiat currency, the Yen.

Trial Run on the Polygon Blockchain

According to a Nikkei report, the trial is being conducted on the Polygon blockchain. This is Sony’s first foray into the realm of digital currencies and the company is seeking to leverage stablecoins to enhance the promotion of its intellectual properties in gaming and sports sectors.

The decision to break new ground is driven by the potential benefits of reduced payment and remittance fees. The implementation of this initiative will be entrusted to SettleMint, a blockchain firm based in Belgium. The stablecoin trial which will span several months will afford Sony Bank the opportunity to evaluate any legal implications associated with the transfer of Japanese yen-backed stablecoins.

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Sony’s Expansion into Web3 Initiatives

Sony Group has in recent times demonstrated a surge in its Web3 development endeavors. Just last month, its video game division filed a patent request to explore the integration of Non-Fungible Tokens (NFTs) to offer gaming users greater flexibility in utilizing in-game assets.

Additionally, the global conglomerate has collaborated with Startale Labs, a key developer of the Astar Network, to spearhead the creation of Sony’s proprietary public blockchain network. Sota Watanabe, CEO of Startale Labs, revealed that the project has transitioned into the execution phase following eighteen months of rigorous development. Besides these third-party sources, Sony Bank has been silent about the developments.

Analysts Say Japan’s Regulation Favorable

Analysts say Sony Bank is making an entry into the crypto space at a time when Japan’s regulatory laws concerning stablecoins have evolved. Last year, regulatory measures were put up as a follow-up to a bill passed in 2022, to ensure user protection following the collapse of TerraUSD. Thereafter, the laws mandated that local stablecoins must be pegged to the yen or another fiat currency, with holders having the ability to redeem them at face value.

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In response to these regulations, various cryptocurrency and financial firms have begun exploring the issuance of stablecoins within Japan. For instance, last year, Mitsubishi UFJ Financial Group (MUFG), introduced its stablecoin issuance platform named “Progmat Coin,” to facilitate the creation of Japanese yen-pegged stablecoins on various public blockchains for adoption by other banks in Japan.

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