Author: Deng Tong, Golden Finance
According to reports from (Nikkei), electronic gaming and technology giant Sony Group plans to issue a stablecoin pegged to the US dollar next year for purchasing games and anime within its digital ecosystem.
Japan also has a relevant regulatory framework for stablecoins, but why did Sony choose to issue a stablecoin in the United States instead of Japan?
1. Where is Sony's stablecoin issued?
Due to the passage of the (GENIUS Act) earlier this year in the United States, it is a great option. Previously, Sony's banking division, Sony Bank, submitted an application in October seeking a national bank charter in the United States. This charter will allow its subsidiary's trust bank to engage in 'certain specific activities involving cryptocurrencies.'
According to reports in October, this bank will operate as a trust company in the U.S. and provide cryptocurrency services, including issuing U.S. dollar-backed stablecoins, holding digital assets for customers, and managing assets for affiliated companies.
The target customers for this stablecoin are U.S. customers, who account for about 30% of Sony Group's overseas sales. This stablecoin aims to be used in conjunction with existing payment methods such as credit cards and helps reduce fees paid to card organizations.
Currently, when players purchase a $60 game on PlayStation (which belongs to Sony Interactive Entertainment), Sony needs to pay fees to the credit card company. However, using Sony's own stablecoin would eliminate these fees. The savings could allow players to enjoy lower prices or provide Sony with higher profits.
For PlayStation users, these changes will initially have little impact on them. The stablecoin will operate alongside existing payment methods rather than completely replacing them. Players may notice slightly lower prices or faster transaction processing, but the basic purchasing experience will remain unchanged.
Over time, Sony may develop more advanced features. For example, users could earn stablecoin rewards for completing games or automatically convert traditional currency into digital currency when shopping. The company may also create a cross-platform loyalty program covering gaming, film, and music services.
Sony Bank has partnered with stablecoin company Bastion, which will provide infrastructure for Sony's stablecoin. Bastion is backed by major cryptocurrency exchange Coinbase. Sony's investment department has also participated in Bastion's $14.6 million financing, indicating that the cooperation extends beyond technical support.
II. Why choose a U.S. dollar stablecoin?
From a business structure perspective, Sony's core digital businesses such as gaming and anime heavily rely on the U.S. dollar market. Besides the U.S., Europe and Southeast Asia also use the dollar as the mainstream settlement currency. Issuing a U.S. dollar stablecoin can maximally meet business needs and avoid cross-border exchange costs associated with a yen stablecoin.
From a regulatory environment perspective, the U.S. (Stablecoin Act) has clearly stated that reserve assets must be cash or short-term government bonds, issuers must operate with licenses, and regulatory standards are clear; whereas Japan, although it amended the (Fund Settlement Act) in 2023 to allow the issuance of stablecoins, mandates a peg to the yen and limits application scenarios, resulting in much less flexibility than the U.S. market.
Specifically, under the regulatory mechanism of the (Stablecoin Act), stablecoins must be 100% backed by cash or short-term U.S. Treasury securities; only "qualified entities" such as banks and federally or state-licensed non-bank payment institutions can issue them; there are no restrictions on stablecoins being pegged to the U.S. dollar.
(Fund Settlement Act) Although Japan has become one of the first countries in the world to clearly establish a legal framework for stablecoins, there is another regulatory logic. Japanese law requires that stablecoins be pegged to the yen at a 1:1 ratio, issued only by a very limited number of entities such as "banks, money transfer institutions, and trust companies"; Japanese regulators believe that stablecoins should primarily be used for: small domestic payments, settlements, and regulated financial service scenarios, and do not encourage DeFi, cross-border payments, crypto trading, or globalization purposes.
Therefore, under Japan's stablecoin regulatory rules, the use of stablecoins is relatively conservative and not suitable for large enterprises like Sony. In contrast, U.S. dollar stablecoins have a broader range of participants and more use cases, making them more appealing to Sony.
III. Voices of Opposition
Sony's plans have faced strong opposition from traditional banks. The Independent Community Bankers of America (ICBA) has formally complained to federal regulators, requesting the rejection of Sony's application.
The banking group believes that Sony's stablecoin is akin to bank deposits but does not have to comply with the same regulations. Traditional banks must purchase federal insurance and invest in local communities. Meanwhile, Sony's digital currency bypasses these requirements, competing directly with bank services.
ICBA has also expressed concerns about the consequences if Sony's cryptocurrency business fails. Since 1933, federal regulators have never closed an uninsured national bank. Addressing the collapse of cryptocurrency companies involves many technical challenges, which may prevent customers from retrieving their funds.
The regulatory review process may take 12 to 18 months. Public opposition from banking groups may further extend this timeline.
IV. Conclusion
The stablecoin market is continually expanding, and Sony's first-mover advantage places it in a favorable position to shape digital payment methods in the gaming sector. Whether other giants will follow suit may depend on whether Sony can successfully navigate the regulatory approval process and gain consumer acceptance by 2026.
Other explorations by Sony in the blockchain field
In 2021, Sony Music participated in the NFT market MakersPlace's $30 million Series A financing, initiating early exploration of NFT technology applications in the music field.
In April 2022, Sony's subsidiary Sony Network Communications and software development company Sun Asterisk established a joint venture NFT business in Singapore, with Sony holding a 70% stake, covering various support services including NFT issuance and game development. In the same year, Sony officially launched the NFT platform SNFT; Sony Music collaborated with the Solana ecosystem NFT platform Snowcrash to plan a series of NFTs featuring artists like Bob Dylan and submitted NFT-related trademark applications for Columbia Records.
In August 2023, Sony Group's wholly-owned subsidiary Quetta Web acquired Amber Japan, which operates the cryptocurrency trading service platform WhaleFin, laying the foundation for subsequent cryptocurrency asset business layout. In September, Sony invested $3.5 million in blockchain technology company Startale Labs, and the two sides jointly established a joint venture focusing on blockchain technology research and development to promote the early development of core blockchain networks.
In March 2024, Sony Bank announced plans to launch the NFT management application "Sony Bank CONNECT" in the summer, which connects to the NFT platform SNFT, providing users with NFT-related privileges and access services. In April, Sony Bank conducted a concept verification of a stablecoin pegged to fiat currency on the Polygon blockchain to evaluate related legal issues and application feasibility. On July 1, the previously acquired Amber Japan was officially renamed S.BLOX, serving as Sony's cryptocurrency exchange and acting as a bridge between traditional assets and Web3 assets. In September, Sony officially launched the test network "Soneium Minato" for the public blockchain Soneium and launched the "Soneium Spark" incubation project simultaneously; Samsung's venture fund Samsung Next announced an investment in Startale Labs and participated in the incubation program, forming a joint pattern of Japanese and Korean tech giants in the blockchain race. Additionally, the company responsible for Sony's blockchain business was officially renamed Sony Blockchain Solutions Laboratory.
In January 2025, Sony will launch the Soneium mainnet, an Ethereum Layer2 blockchain network, through its Sony Blockchain Solutions Laboratory. The mainnet continues the technical specifications of the testnet, supporting seamless migration of applications and real cryptocurrency payments; on the day of launch, Sony blocked multiple meme coin projects citing "intellectual property protection".
Sony's multiple business lines are deeply coordinated with Soneium, where Sony Pictures Entertainment provides exclusive access to users purchasing content on specific platforms, Sony Music Entertainment (France) releases limited edition NFTs, and Sony Music Publishing (Japan) launches NFT events linked to girl group performances; at the same time, cooperation with Astar Network is deepened, leveraging its technology and operational experience to advance Web3 ecosystem expansion, with ASTRium asset tokens becoming SoneSTRium assets.
Sony fans had hoped that Soneium would attract a large number of PlayStation games. However, so far, no mainstream game series from Sony has published a crypto game on Soneium. Nevertheless, it has developed into a network with NFT music collections and a growing library of small games, and it has previously collaborated with Square Enix's now-closed cryptocurrency game (Symbiogenesis).
(The above content is an excerpt and reprint authorized by partner PANews, original link | Source: Jinse Finance)
"Why did Sony choose to issue a U.S. dollar stablecoin and abandon the yen stablecoin?" This article was first published on (Blockcast).