Sony Group plans to issue a Japanese Yen stablecoin, which will be tested on the Polygon network.

According to a report by Nikkei Asia, Sony Bank, a banking division under the Japanese Sony Group, is planning to issue a stablecoin, with a pilot program to be conducted on Polygon.

Sony Subsidiary Plans to Issue Japanese Yen Stablecoin

The development of this stablecoin is being carried out by the blockchain company SettleMint based in Belgium. Reports indicate that Sony is actively exploring the application of stablecoins in projects related to gaming and esports, as using stablecoins can reduce payment and remittance fees.

Sony's stablecoin experiment will assess any legal issues related to transactions involving the Japanese Yen stablecoin and is expected to continue for several months.

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Earlier reports stated that Sony announced in September last year a collaboration with the core developers of Astar Network, Startale Labs, to jointly develop "Sony Chain" and aims to surpass the Base Chain developed by Coinbase.

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Japan Continues to Push Crypto Regulation

Japan, which has been relatively conservative in its crypto policies in the past, seems to have further relaxed crypto regulations after the global attention sparked by FTX's bankruptcy.

Not only did Japan pass a stablecoin bill last year, allowing specific financial institutions to issue stablecoins within a regulatory framework, but Circle CEO Jeremy Allaire also revealed considerations for issuing stablecoins in Japan back in July last year.

Furthermore, the Japan National Tax Agency announced plans to relax cryptocurrency taxes, allowing companies with "unrealized gains" to be conditionally exempt from taxes.

• Early Legislation, Early Maturity? A Glimpse into Japan's Crypto Market Situation Gradually Relaxing from April this Year

• Japan National Tax Agency Eases Cryptocurrency Taxes, Companies with "Unrealized Gains" Conditionally Exempt

• Japan Passes Stablecoin Bill! Must Be Linked to Legal Tender, Guarantee Redemption, and Can Only Be Issued by Specific Financial Institutions