Sony Bank Tests Stablecoin, Use Polygon Infrastructure

JAKARTA - The digital financial sector has become a hot topic in recent years since the increasing popularity of blockchain. Blockchain is a new technology that has become a permanent store of digital ledger-like data. This has attracted a number of banks to use this technology.

Recently Sony Bank, Japan's leading online bank which is part of Sony Group Corp, has taken significant steps by starting a stablecoin publishing experiment. This collaboration involves SettleMint, a Belgian blockchain technology company, and will be implemented on Polygon infrastructure, a blockchain network known for competitive transaction fees.

The experiment explores the use of fiat-bound stablecoins, particularly Japanese Yen, to offer alternative payment options in the Sony Group ecosystem, including in the game and sport sectors. Stablecoins, whose value is stable as they are associated with assets such as fiat money, are solutions to price volatility that are often a challenge in the use of cryptocurrencies.

In the coming months, Sony Bank will research legal aspects related to Yen-backed stablecoin transfers, in hopes of reducing transaction fees for users. This effort also reflects Sony's commitment to leveraging blockchain technology to strengthen its position in the digital financial market.

Sony and Blockchain

Sony Bank's move is not Sony Group's first initiative in blockchain technology. Previously, Sony Network Communications had collaborated with Astar Network and Startale Labs to develop Web3 projects, including the use of NFT and DAO.

On the other hand, Japan has also shown an open attitude towards blockchain and crypto technology, with regulations supporting the issuance and use of stablecoins. This has caught the attention of global crypto companies, including Circle Financial, which have partnered with SBI Holdings to expand the use of USDC stablecoins in Japan.