Japanese Banks Continue to Accept Stablecoin Innovation

Sony Bank, the Japanese commercial bank of Sony Financial Group, has launched a concept test to create a stablecoin that could work alongside fiat currencies, including the Japanese yen.

The initiative aims to explore the potential of Stablecoins to facilitate payments and funds across Sony Group's various ecosystems covering games, sports and other intellectual property.

Sony wants to improve user experiences using Stablecoins

According to the Nikkei report, Sony Bank's test will use the Polygon blockchain, which is known for its scalability and low transaction fees. In addition, Sony Bank has partnered with SettleMint, a Belgian blockchain development company, to facilitate the technical implementation of the project.

The trial is expected to last several months and address potential legal issues surrounding yen-backed stablecoin transfers.

Sony wants to use stablecoins to improve the user experience in its content offerings. As such, the company can facilitate seamless trading of digital assets for Sony's gaming and entertainment platforms using a stable coin.

This move coincides with the launch of Sony Bank's upcoming “Sony Bank Connect” app. The app provides a user-friendly environment to manage digital assets including NFTs (Non-Fragment Tokens).

Read more: Guide to the Best Stablecoins in 2024

At the same time, Sota Watanabe, CEO of Statelle Labs and co-founder of Astar Networks, has expressed plans for deeper integration with Sony.

“Sony Bank is planning to open a stable coin and Sony is planning to open a blockchain with us [Startale and Astar Network]. It's getting ready,” Watanabe wrote on his X (formerly Twitter) account.

Sony and Stathale have a history of partnership. In September 2023, Sony Network Communications Inc. He invested $3.5 million in Starale Labs. The partnership aims to leverage Sony's extensive experience in telecommunications and other sectors to establish a global Web3 infrastructure.

A positive regulatory environment for the Crypto and Web3 sectors

As part of a larger movement in Japan's banking sector, Sony Bank's efforts to adopt stablecoin technology are notable.

Read more: Stablecoin regulations around the world

In the year In November 2023, Mitsubishi UFJ Trust Bank, a major Japanese bank, partnered with Progmat and Ginco for experiments on Stablecoin infrastructure. Meanwhile, Hokoku Bank recently launched Japan's first deposit-backed stablecoin, “Tochika,” which has increased spending convenience for consumers.

Several other Japanese banks have experimented with Statcoin-based electronic money transfers.

The growing stable coin sector in Japan benefits from the country's progressive regulatory framework. In June 2023, Japan legalized stablecoins as fiat currencies and allowed licensed financial institutions to issue them. Moreover, the government lifted the ban on foreign stable coins.

In addition to appropriate stablecoin regulations, Japan has a positive regulatory environment for the crypto and Web3 industry. BeinCrypto previously reported in February that Japan would pave the way for Web3 and crypto initiatives through an amendment to its investment laws.

This goal is to target the country's technology sector, especially venture capital (VC) investments in crypto and web3 startups.