Sony Bank, the banking arm of the Japanese gaming and entertainment conglomerate, has started a proof-of-concept to issue its own stablecoin pegged to fiat currency, a Nikkei report stated. The trial is set to occur on the Polygon blockchain.
Sony’s stablecoin experiment will assess any legal issues associated with transferring Japanese yen-backed stablecoins and is anticipated to continue for several months, as Nikkei reported. The development will be entrusted to Belgium-based blockchain firm SettleMint. The global conglomerate is also working with Startale Labs, a core developer of Astar Network, to build Sony’s own public blockchain network. Startale CEO Sota Watanabe told The Block that the project is now in the execution phase after one and a half years of development.Stablecoin activity in Japan
Since then, crypto and finance firms started to explore issuing stablecoins in the fourth-largest economy in the world. Last September, Binance Japan partnered with local bank MUFG to study the issuance of fiat-pegged stablecoins.