tl;dr
Sony Bank, the financial services arm of Sony Group Corporation, is delving into the development of a stablecoin pegged to fiat currencies, notably the Japanese yen, in collaboration with SettleMint, a Belgian blockchain startup. This initiative aligns with Japan's favorable regulatory stance toward...
Sony Bank, the financial services arm of Sony Group Corporation, is delving into the development of a stablecoin pegged to fiat currencies, notably the Japanese yen, in collaboration with SettleMint, a Belgian blockchain startup. This initiative aligns with Japan's favorable regulatory stance towards stablecoins, prompting local companies to embark on similar ventures. Sony aims to integrate the stablecoin into its vast intellectual property portfolio and explore its use as a payment method for companies utilizing its IP rights. Additionally, the bank plans to implement advanced technologies for identity verification and regulatory compliance. This move comes amidst Sony's continued heavy investment in distributed ledger technology, further solidifying its position at the forefront of blockchain innovation.
Sony Bank is exploring a stablecoin pegged to fiat currencies, including the Japanese yen, a Nikkei report has revealed. Established in 2001, Sony Bank is the financial services arm of Sony Group Corporation (NASDAQ: SONY), the Japanese electronics, entertainment, and gaming conglomerate. With no physical branches or ATMs, it’s one of the largest banks in Japan. The bank is working with Belgian blockchain startup SettleMint on a stablecoin.
Sony Bank plans to launch stablecoin and Sony plans to launch a blockchain with us. It is getting ready. — Sota Watanabe (@WatanabeSota) April 5, 2024. As SettleMint attends to the technical side, Sony is working with regulators on the requirements of issuing a stablecoin, including its issuance, circulation, and redemption, the paper reports. Japan has become one of the friendliest jurisdictions for stablecoins, with the government unveiling a stablecoin law last year. This regulatory stance has seen local companies embark on stablecoin initiatives, with Hokkoku Bank recently launching Japan’s first stablecoin backed by bank deposits. Sony is exploring the use of the stablecoin in its vast intellectual property portfolio, which spans gaming and sports, and accepting it as a payment method for companies that use its IP rights. With payments being closely regulated and monitored, Sony Bank intends to explore Zero-Knowledge Proof (ZKP) technology for identity verification as well as heightened KYC, AML, and anti-fraud measures to comply with financial regulations.
The announcement comes amid a rise in the prominence of stablecoins globally. Now accounting for $154 billion, they have become a key part of the digital asset ecosystem. However, a vast market gap remains to be addressed, with the top issuers facing integrity issues and ongoing lawsuits. Additionally, some major global companies are working on stablecoins that serve specific needs in certain closed ecosystems, such as Sony’s multi-billion gaming and sports ventures. Meanwhile, Sony continues to invest heavily in distributed ledger technology. In 2023, it partnered with Startale Labs on a public blockchain, which it hailed as “the backbone of global Web3 infrastructure.”
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