According to Nikkei, Sony Bank, the Japanese entertainment giant’s banking arm, is undertaking a trial to develop a stablecoin connected to fiat currency. The trial will run on the Polygon blockchain. Sony intends to employ stablecoins to reduce payment and remittance costs while improving its gaming and sports intellectual property.
The stablecoin experiment is planned to last several months and will analyze the legal ramifications of transferring Japanese yen-backed stablecoins. The work will be overseen by SettleMint, a blockchain business based in Belgium.
Sony Group has been actively involved in Web3 efforts. Its gaming section recently filed a patent request to incorporate NFTs, which would provide players more flexibility in using in-game assets.
Furthermore, the company is working with Startale Labs, a main creator of the Astar Network, to launch Sony’s public blockchain network. Sota Watanabe, CEO of Startale, said that the project is now in the execution phase following a year and a half of rigorous development.
Following the collapse of TerraUSD, Japan developed stablecoin regulatory measures to protect consumers, which went into force in June of last year. These laws ensure that local stablecoins are backed by the yen or another fiat currency and can be redeemed for their face value.
As a result, cryptocurrency and financial organizations are considering the issuance of stablecoins in Japan, the world’s fourth-largest economy. Notably, Binance Japan cooperated with local bank MUFG in September to explore the possibility of issuing fiat-pegged stablecoins.
