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The finance division of Sony, the massive Japanese game and entertainment company, is launching a proof of concept to launch the Nikkei, a stablecoin that is backed by fiat money. This program, which offers advantages including lower payments and remittance costs, is in line with Sony’s plan to capitalize on its intellectual rights in the sports and gaming industries.
The Polygon blockchain network will host the stablecoin experiment, which aims to overcome legal issues surrounding the transfer of stablecoins backed by the Japanese yen. The blockchain startup SettleMint, situated in Belgium, will be in charge of developing the experiment, which should last several months.
Sony Group has been actively expanding its presence in the Web3 space, with recent efforts including patent requests for NFT adoption in gaming and partnerships for the development of its public blockchain network. Startale Labs CEO, Sota Watanabe, revealed that the project is in execution after extensive development spanning one and a half years.
In reaction to worries about user safety following the demise of TerraUSD, Japan established a stablecoin legal framework. Fiat pegs and easy redemption at face value are requirements imposed by the legislation on local stablecoins. The issuing of stablecoins in the Japanese market has piqued the interest of financial and cryptocurrency firms.
Numerous financial organizations have launched stablecoin issuing initiatives in response to the regulatory changes. Of note, Binance Japan conducted research on fiat-pegged stablecoins in partnership with the local bank MUFG. Tochika is Japan’s first stablecoin guaranteed by deposits, launched by the regional bank Hokkoku and now available for use at a few Suzu City retail locations.