[NEWS] Sony Bank begins pilot project to issue stablecoin, with an eye on use in the entertainment industry

Sony Bank announced on the 8th that it has begun a demonstration experiment to issue a stable coin pegged to the Japanese yen. Taking advantage of the advantage of reducing the fee burden when individuals make payments and transfers, the bank is considering using it as a payment method for businesses that use intellectual property such as games and sports developed and operated by the Sony Group.

The demonstration experiment will use the Polygon (MATIC) blockchain. It seems that Polygon was selected because of its low fees and track record. In addition, the development will be entrusted to SettleMint, a blockchain development company based in Belgium.

The demonstration experiment is scheduled to last several months, and will verify whether there are any problems with the transfer of stable coins backed by the Japanese yen and legal aspects.

The advantage of using stable coins is that it will make it easier for users of Sony's content such as games to trade digital assets.

Sony Bank plans to release "Sony Bank CONNECT," a smartphone app for the Web 3.0 entertainment field that manages digital assets, this summer. Sony Bank Connect aims to contribute to the expansion of the creator and fan economic sphere with the theme of "Easy and safe for everyone to enjoy. Leading to a wider range of moving experiences."

By connecting to the "SNFT" service operated by SNFT, users can display and enjoy the NFTs they hold on SNFT.

When released in the summer of 2024, users will be able to enjoy NFTs that Sony Bank has distributed in past campaigns, as well as digital content that will be given to users who purchase Sony Bank's digital securities "Jointly Managed Designated Money Trust Beneficiary Rights (US Dollar-Denominated Green Finance Security Token 2024 No. 1)" and answer a questionnaire.

Sony is currently defining requirements and designing a blockchain-based wallet, and Sony Bank Connect is positioned as the first step in that process.

Current situation surrounding stable coins in Japan

Regarding stable coins in Japan, Hokkoku Bank began offering its deposit-type stable coin "Tochika" on the 1st. Tochika is the first deposit-type stablecoin in Japan to be issued using blockchain and with deposit funds as backing assets.

JPYC, a Japanese yen-linked stablecoin that has already been issued as a prepaid payment method, is also considering issuing a "trust-type JPYC" using "Progmat Coin" operated by Progmat, and domestic cryptocurrency exchange Binance Japan is also preparing for it.

Trust-type stablecoins are expected to appear as early as this summer, and their release may intensify competition.

Reference:Announcement
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