The banking arm of Japanese gaming and entertainment, Sony Bank, has stated a proof of concept to launch its own stablecoin pegged to fiat currency, the Nikkei. The company will explore and promote its intellectual properties in the gaming and sports domains. Also, Sony’s new venture will have advantages such as reduced payments and remittance fees.

The trial of the stablecoin will be done on the Polygon blockchain network, and it will analyze the legal issue linked to the transfer of Japanese yen-backed stablecoins. Besides, it might take a few months for the company to complete the trial. A Belgium-based blockchain firm, SettleMint, will be entrusted with the development of the trial.

Furthermore, Sony Group has been expanding its Web3 development for the past few months. The video division of the company recently filed a patent request to adopt NFTs to allow more flexibility to game users for using the in-game assets.

Additionally, the company partnered with Startale Labs for Sony’s own public blockchain network. The CEO of Startale, Sota Watanabe, told The Block that the new project is in the execution phase after one and a half years of development. However, Sony Bank has not responded to this comment.

Japan’s Stablecoin Activity

Japan launched a regulatory framework on stablecoins in June last year to protect users after the collapse of TerraUSD. This regulation ensures local stablecoins are linked to the yen or any other fiat currency and holders can redeem them at face value without any issues.

Soon after the law came, crypto and finance companies explored the market to issue stablecoins in their economies. Binance Japan also collaborated with local bank MUFG to study the issuance of fiat-pegged stablecoins last September.

Not to mention, Hokkoku, a regional bank in Japan, launched the country’s first deposit-backed stablecoin called Tochika. Now, this stablecoin can be used in selected retail stores within Suzu City in Ishikawa prefecture. The recent developments show Japan's position in the blockchain domain, and Sony Bank’s stablecoin trial is expected to be the group’s big shot.