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The financial arm of Sony Group successfully experimented on the Polygon crypto network for experimental Yen-pegged stablecoin.
Sony Bank is the financial arm of Sony Group, a leading Japan-based gaming and entertainment conglomerate. In 2001, Sony Bank was established. This bank offers online banking services in Japan, focusing on savings accounts, investment trusts, and loans. It leverages the brand’s reputation for innovation and user experience to provide convenient and seamless online banking services & solutions to its customers.
On 5 April 2024, Reports confirmed that Sony Bank successfully tested the launch of a Japanese Yen-pegged stablecoin on the Ethereum layer-2 scaling network Polygon (Matic).
With this stablecoin launch experiment, Sony Bank aimed to launch a new stablecoin on a new public blockchain in the market. That stablecoin will be available to use in the digital payment for businesses that use intellectual property owned by the Sony Group.
Sony Bank plans to launch stablecoin and Sony plans to launch a blockchain with us. It is getting ready. https://t.co/J6jqsjGnTa
— Sota Watanabe (@WatanabeSota) April 5, 2024
Sony Bank focussed on increasing the ease of digital payment with the use of this new stablecoin and also to reduce transaction fees for individuals and streamline payment processes.
To achieve this goal, Sony Bank collaborated with Startale Labs, a leading developer of Astar Network. Under the partnership with Startale Labs, Sony Bank will launch a new public blockchain network and also will get Web3 expertise for its digital payment product.
The fastest way to onboard billions of people into web3 is to leverage existing assets and service rather than making user base from scratch. That’s why we work with conglomerates. They have literally billions of user touch points.
— Sota Watanabe (@WatanabeSota) April 5, 2024
TerraUSD downfall & Stablecoin adoption In Japan
As we know, the Terra crypto empire collapsed badly in May 2022, in which the top stablecoin TerraUSD (UST) & Luna coin collapsed. Following the downfall of TerraUSD stablecoin, the Japanese financial regulatory bodies established a new rule for the local stablecoin issuers, in June 2023.
Under Japanese rules, local stablecoin issuers should make sure that stablecoin is always pegged by Yen or other currency and also the stablecoin users can redeem them at face value at any time.
Stablecoin-dedicated rules in Japan acted as a catalyst to push the fintech companies to show Inclination toward stablecoin-related business ideas.
Read also: Crypto-friendly SEC Commissioner criticises the SEC body over lack of public engagement
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