Sony Bank is developing an in-house Stablecoin with Bastion

• Sony Bank, the online banking arm of Sony Corporation, is considering the issuance of a Sony-branded US dollar Stablecoin

• Sony Bank is working with Bastion, an NYDFS-licensed blockchain infrastructure provider, in the United States

• Stablecoins enable corporates to capture customer spending, offer micro-rewards, cut payment transaction costs and earn net interest margin

Sony Bank Inc., the online banking arm of the Sony Group Corporation, the Japanese electronics, video games and content manufacturer, is planning to give its customers the option to use a Sony-branded US dollar-denominated Stablecoin.

The bank has established a “strategic relationship” with Bastion Platforms, Inc., which provides technology to issue Stablecoins, digital wallets and blockchain on- and of-ramps to connect users to the conventional banking system.

Bastion is licensed by the New York State Department of Financial Services, which granted the company a trust charter, and possesses additional state money transmission licences.

In a press release, Sony Bank says it is “exploring the development of a stablecoin payment ecosystem using blockchain technology for Sony affiliated companies and is also considering the establishment of a subsidiary in the United States. Through this strategic relationship, Sony Bank and Bastion will jointly advance concrete plans. Bastion's infrastructure will be leveraged for the issuance and redemption of stablecoins, and the aim is to create new financial experiences for the digital age.”

Sony Bank is not alone in seeing an opportunity in Stablecoins. PayPal, Stripe and Klarna have issued in-house Stablecoins, as has payments technology provider FiServ. Retailers Amazon and Walmart are reported to be looking at issuing Stablecoins.

The advantages include one familiar to games manufacturers that issue in-game currencies – trapping customer expenditure inside the business – but include reducing transaction costs in terms of fees paid to payments networks such as card issuers Visa and Mastercard, and net interest margin on customer deposits. Stablecoins also expand the opportunity to offer customer micro-rewards.