Sony Bank to Launch New Yen-Pegged Stablecoin with Ethereum Layer 2

Sony Bank, a subsidiary of Sony Group Corporation, is venturing into the cryptocurrency space by developing a yen-backed stablecoin.

This initiative, in collaboration with Ethereum Layer 2 scaling solution Soneium, aims to bolster transaction efficiency and reduce costs by operating on a second-layer protocol.

The announcement was first shared on social media by JC, a well-known figure in the decentralized finance (DeFi) community.

“Ethereum Layer 2 Soneium by Sony will create a stablecoin for the Japanese Yen with Sony Bank. This is a very smart move by Sony,” JC commented, highlighting the strategic significance of this development.

Stablecoins like Soneium are gaining traction in the crypto market due to their ability to maintain price stability, contrasting with the volatility experienced by cryptocurrencies such as Bitcoin and Ethereum. By leveraging the Soneium platform, Sony’s stablecoin aims to address scalability challenges within the Ethereum network, enabling quicker and more economical transactions.

Sony Bank is currently evaluating the compliance of stablecoin transfers with Japanese regulatory standards, ensuring that their new digital currency aligns with national legal requirements.

A competitor in Ripple?

The global stablecoin market is witnessing substantial growth, with major players like Ripple advancing initiatives. Ripple’s Chief Technology Officer, David Schwartz, recently disclosed that their new stablecoin, RLUSD, will initially be available only to institutional investors. Schwartz elaborated on social media that retail investors would require intermediaries such as exchanges to access RLUSD upon its release.

Currently, Ripple is conducting trials for its stablecoin on both its native and Ethereum’s blockchains. According to Coinspeaker, Ripple is also exploring the integration of smart contracts into its XRP Ledger and plans to introduce an Ethereum Virtual Machine sidechain to enhance interoperability with other blockchains.

Schwartz recently commented on X where he clarified that RLUSD will not be directly accessible to retail investors at launch. He added that people would need to acquire the stablecoins with the help of an exchange or other intermediaries.

It will probably only ever be available directly to institutions. Can you get USDC from Circle or USDT from Tether, because I can't.
— David "JoelKatz" Schwartz (@JoelKatz) September 8, 2024

As of this writing, Ripple’s stablecoin is still in its testing phase, and trials are conducted on Ripple’s and Ethereum’s blockchain. Coinspeaker writes that Ripple is looking forward to leveraging smart contracts into its XRP Ledger. It is also likely to introduce an Ethereum Virtual Machine sidechain to XRPL in order to enhance interoperability with other blockchains.

As for Sony Bank, the experimental process will likely continue for several months. The firm will also take care of whether or not any legal issue arises out of it. JC’s post notes reveal that Sony Bank’s goal is to make sure that individuals can transfer money and make payments with ease. It also aims to achieve all these by generating lower transaction fees while using stablecoins, thus, amplifying the use of digital assets in the banking space.

Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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