SBI Financial Group in Japan is creating a consumer payment platform called "S Coin" to support local revitalization, entering the trial phase.

Japanese financial holding group and venture capital firm SBI Holdings has announced that it has officially launched a digital currency issuance platform called "S Coin" using the R3 blockchain platform Corda. The platform will begin a pilot program this month and plans to issue a digital currency named "S Coin" through the platform.

Issuing Regional Currency with S Coin: Local Revitalization

SBI Holdings Group was established in 1999, originally derived from SoftBank, and became an independent financial group after SoftBank's stake was divested in 2006.

According to an announcement on the official website of SBI Holdings Group, utilizing the solution provided by blockchain service provider R3, SBI has built the "S Coin" platform using Corda. In their latest statement, the company expressed its intention to collaborate with local financial institutions in Japan through S Coin to launch regional digital currencies to promote "local revitalization." The concept of local revitalization refers to developing industries that best suit the local customs, geographical features, and needs.

In addition to issuing digital currencies based on design requirements, SBI also plans to create a remittance mechanism that can be used between its subsidiary Money Tap. Money Tap is a mobile payment app that enables real-time transfers and deposits between different bank accounts. With the launch of "S Coin" in the future, users will be able to transfer fiat currency directly to the "S Coin" platform via Money Tap and make payments to merchants through the services provided by Money Tap. Furthermore, Money Tap operates on Ripple's blockchain network RippleNet and has received investments from 35 financial banks in Japan.

Strategic Deployments Over the Years

In fact, SBI Holdings Group has been strategically deploying in the blockchain and cryptocurrency fields in recent years. Its consumer payment platform "S Coin" was not only planned in 2018 but also launched the cryptocurrency exchange "VCTRADE" the same year. With a strong relationship with Ripple, SBI recently introduced a cryptocurrency fund primarily based on Ripple coins.

Reports indicate that SBI launched its first cryptocurrency fund on the 26th, with a portfolio consisting of 50% Ripple, 30% Bitcoin, and 20% Ethereum. The chairman of the group, Yoshitaka Kitao, emphasized:

"This will be a product that allows all traditional financial institutions to enter."

On July 24th, SBI also acquired a 10% stake in the security token issuance platform "Boostry." Post-acquisition, the main shareholders of "Boostry" are Nomura Holdings (54%), Nomura Institute (34%), and SBI (10%).

MUFG to Launch Digital Currency by Year-End

On another front, there have been new advancements in the commercial adoption of blockchain technology in Japan. According to the report by Asahi Shimbun, Japan's largest financial group, Mitsubishi UFJ Financial Group (MUFG), is set to launch a digital currency called "Coin" later this year. Hiroki Kamezawa, the CEO of Mitsubishi Group, mentioned in an interview with Asahi Shimbun on the 10th of this month:

"Although the launch is relatively slow, coupled with the pandemic (people unable to go out), now might be a good timing. We want to combine Recruit's (a well-known Japanese job site) young user base with our financial expertise to launch services."

The digital currency will be jointly operated by MUFG and the Japanese internet company Recruit. It was initially developed in 2017 and expected to be commercially deployed in 2019, but was delayed due to restrictions under Japanese banking laws. According to reports, "Coin" will have a 1:1 exchange rate with the Japanese yen and can be used for payments or converted back to cash into bank accounts. Moreover, it is anticipated that the currency will be usable on the Japanese travel booking site Jalan and the gourmet discount coupon site Hot Pepper Gourmet after its launch.