Sony Bank, the banking arm of the Japanese entertainment giant, is starting a trial to launch its stablecoin linked to fiat currency, according to Nikkei. The trial will be conducted on the Polygon blockchain in collaboration with the Belgium-based blockchain company SettleMint.
Sony aims to use stablecoins to lower payment and remittance costs and enhance its gaming and sports intellectual properties. The stablecoin experiment will assess the legal implications associated with transferring Japanese yen-backed stablecoins and is expected to run for several months. SettleMint, a Belgium-based blockchain firm, will oversee the development.
Sony Group has been actively venturing into Web3 initiatives. Its gaming division recently filed a patent request to incorporate NFTs, which would provide gamers with enhanced flexibility in utilizing in-game assets.
Furthermore, the conglomerate is collaborating with Startale Labs, a key developer of Astar Network, to establish Sony’s public blockchain network. Startale CEO Sota Watanabe confirmed the project is in the execution phase after extensive development lasting one and a half years.
Japan implemented regulatory measures concerning stablecoins to safeguard users following the collapse of TerraUSD, which came into effect in June of last year. These regulations ensure that the yen or another fiat currency backs local stablecoins, and holders can redeem them at their face value.
Consequently, crypto and financial institutions have begun exploring the issuance of stablecoins in Japan, the world’s fourth-largest economy. Notably, Binance Japan collaborated with local bank MUFG in September to investigate the potential issuance of fiat-pegged stablecoins.
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