Sony’s attempt to perform its stablecoin trial on Polygon’s blockchain is significant as the network boasts a huge user base, thus allowing the firm to optimize the advancement and potency of the project.
Sony Bank, one of the largest online banks in Japan and a subsidiary of Sony Group Corp (TYO: 6758) has reportedly started stablecoin issuance experimentation. Crucially, the bank said it plans to collaborate with SettleMint, a Belgium-based blockchain company to perform stablecoin trials on the Polygon blockchain.
Sony Bank’s Trial with Stablecoin
According to reports from local news media, Sony Bank’s stablecoin experimentation is tied to legal currencies such as the Japanese Yen. Through the trial, the company hopes to evaluate how businesses that use the Sony Group’s intellectual property, such as games and sports can utilize stablecoins as a payment option.
Basically, stablecoin is a type of currency in which the digital asset’s value is tied to a reference asset, such as fiat money, exchange-traded commodities, or another cryptocurrency. These digital assets are becoming quite popular as they attempt to tackle concerns over price fluctuations by tying the value of cryptocurrencies to other more stable assets, usually fiat currencies.
As regards Sony’s stablecoin trial, anticipated to span over the next couple of months, the bank said it will investigate any legal issues related to transferring Yen-backed stablecoins. Moreover, Sony hopes to benefit from cheaper fees for individuals when transmitting money and making payments.
Sony’s attempt to perform its stablecoin trial on Polygon’s blockchain is significant as the network boasts a huge user base, thus allowing the firm to optimize the advancement and potency of the project. A key catalyst contributing to the growth of Polygon is the increased affordability it provides. In comparison with Ethereum, Polygon offers lower transaction fees, making it a popular blockchain network for developing DApps with a cost-effective user interface.
Notably, Sony Group’s venture into blockchain technology didn’t begin with its stablecoin experimentation. Last year, Sony Network Communications allied with Astar Network to introduce a Web3 incubation program for projects that target the use of Non-Fungible Tokens (NFTs) and Decentralized Autonomous Organizations (DAOs).
Months after this move, Sony Network Communications went on to partner with Singapore-based Web3 infrastructure developer Startale Labs to create Sony’s indigenous blockchain network.
Japan Welcomes Blockchain and Web3 Technology
Japan is becoming increasingly recognized for its embracing of crypto acceptance, attracting a host of crypto enterprises to the nation.
Last year, the country established a clear regulatory framework for the issuance and usage of stablecoins in the country. According to authorities, the amended law is expected to stimulate and advance the country’s adoption of the crypto industry as well as the Web3 ecosystem.
Following recent crypto regulatory advancement in Japan, Circle Financial, one of the leading stablecoin issuers in the crypto industry partnered with SBI Holdings in November to expand its presence in Japan. Through this partnership, Circle stated at the time that it hoped to increase the adoption of its USDC stablecoin outside the United States.
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