Sony Bank, the banking arm of the Japanese gaming and entertainment conglomerate, has started a proof-of-concept to issue its own stablecoin pegged to fiat currency, a Nikkei report stated. The trial is set to occur on the Polygon MATIC
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Due to the advantages of reduced payment and remittance fees, Sony is exploring the use of stablecoins to promote the company’s intellectual properties in gaming and sports, according to the report.
Sony’s stablecoin experiment will assess any legal issues associated with transferring Japanese yen-backed stablecoins and is anticipated to continue for several months, as Nikkei reported. The development will be entrusted to Belgium-based blockchain firm SettleMint.
Sony Group has recently been actively expanding its Web3 development. Last month, its video game division filed a patent request to adopt NFTs to provide gaming users with more flexibility in utilizing in-game assets.
The global conglomerate is also working with Startale Labs, a core developer of Astar Network, to build Sony’s own public blockchain network. Startale CEO Sota Watanabe told The Block that the project is now in the execution phase after one and a half years of development.
Sony Bank did not immediately respond to The Block’s request for comments.
Stablecoin activity in Japan
Japan’s regulatory framework on stablecoins, which sought to ensure user protection after the collapse of TerraUSD, went into effect in June last year. The regulation reportedly guarantees that local stablecoins are linked to the yen or another fiat currency, and that holders can redeem them at face value.
Since then, crypto and finance firms started to explore issuing stablecoins in the fourth-largest economy in the world. Last September, Binance Japan partnered with local bank MUFG to study the issuance of fiat-pegged stablecoins.
USDC issuer Circle also partnered local banking giant SBI Holdings last November to look into circulating USDC, the second largest stablecoin in the world, in Japan.
Earlier this week, Hokkoku, a regional bank in Japan, announced that it launched the country’s first bank deposit-backed stablecoin named Tochika. The stablecoin will be used in select retail stores within Suzu city in Ishikawa prefecture.
