Sony Bank is working to issue a stablecoin on Polygon Blockchain. It is also exploring ways to adapt stablecoins to the group’s gaming properties. The bank also explained the reasons why it chose Polygon!
Sony Bank chooses Polygon for stablecoin trial!
Sony Bank, the banking arm of the Japanese gaming and entertainment conglomerate, has launched a proof of concept to launch its own stablecoin pegged to fiat currency, according to a Nikkei report. The trial will be carried out on Polygon (MATIC), one of the leading Blockchain projects. According to the report, Sony chose Polygon due to the advantages of low payment and transfer fees. Additionally, Sony is exploring the use of stablecoins to promote the company’s intellectual properties in gaming and sports.
According to Nikkei, Sony’s stablecoin experiment will evaluate legal issues regarding the transfer of Japanese yen-backed stablecoins. Therefore, it is expected to continue for several months. Belgium-based Blockchain firm SettleMint will handle the development.
The technology giant is carrying out various studies in the field of Blockchain
Sony Group has been actively expanding Web3 development lately. Last month, the video game division filed a patent request to adopt NFTs to give gaming users more flexibility in using in-game assets. The global conglomerate is also working with Startale Labs, the core developer of Astar Network. With this collaboration, Sony is trying to establish its own public Blockchain network. Startale CEO Sota Watanabe said the project is currently in the execution phase after a year and a half of development.
Stablecoin activity in Japan is on the rise
cryptokoin.comAs you follow from , the collapse of stablecoin TerraUSD shook the market. During this process, urgent regulation demands came to the fore. Aiming to protect users, Japan also took action. In this regard, it prepared a regulatory framework for stablecoins. These regulations came into force in June last year. The regulation requires that native stablecoins be pegged to the yen or another fiat currency and that their holders can redeem them at face value.
Since then, crypto and financial firms have begun exploring issuing stablecoins in Japan. Last September, Binance Japan partnered with local bank MUFG. As part of this partnership, it is exploring the issuance of stablecoins pegged to fiat money. USDC issuer Circle also partnered with local banking giant SBI Holdings last November to explore the circulation of USDC, the world’s second-largest stablecoin, in Japan. Earlier this week, Hokkoku, a regional bank in Japan, also entered the stablecoin business. The bank announced the launch of the country’s first bank deposit-backed stablecoin called Tochika. The stablecoin will be available at select retail stores in the city of Suzu in Ishikawa prefecture.
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