Sony Bank Launches Stablecoin Pilot Project on Polygon Blockchain

Sony Bank, a banking division of the Japanese entertainment and gaming conglomerate, has begun a pilot to make its own stablecoin linked to fiat currency, Nikkei reported. The experiment is set to occur on the Polygon blockchain.

Sony’s Stablecoin Experiment on Polygon

The report statement asserts that Sony is exploring stablecoins to drive the firm’s intellectual property in gaming and sports by the advantages of lower payment and remittance fees. According to Nikkei, the Sony’s stablecoin pilot aims to trial the legal issues associated with the transfer of yen-based stablecoins and will take a few months. The Belgian company, SettleMint, will do the development.

Recently, Sony Group has been active in the development of Web3 technology. Its gaming part requested a patent less than a month ago for the implementation of non-fungible tokens (NFTs) in order to improve the flexibility with assets used by the players in games. In addition, the company has partnered with Startale Labs, a main developer of the Astar Network, to introduce Sony’s own public blockchain network. The CEO of Startale, Sota Watanabe informs that after eighteen months of development, the project has entered the phase of implementation.

Japan’s Stablecoin Landscape

Japan had introduced a stablecoin regulatory framework in June of last year to protect the consumers after the collapse of TerraUSD. This bill requires that domestic stablecoins remain linked to the yen or any other official tender, thus ensuring redemption at par value. As a result, cryptocurrency and financial institutions are exploring possibilities of launching stablecoins in Japan which is the fourth-biggest economy in the world.

For instance, in September, Binance Japan teamed up with a local bank MUFG to investigate into the development of stablecoins pegged to fiat currencies. Further, the company behind USDC, Circle, entered into a partnership with SBI Holdings, a major Japanese bank, last November to explore bringing USDC, the world’s second-largest stablecoin, to the Japanese market.

This week, a regional bank in Japan, Hokkoku, announced the release of Tochika, the country’s first stable coin backed by bank deposits. At first, this e-currency will be allowed in some select retail outlets in Suzu City, which is in Ishikawa prefecture.