Sony Takes a Major Step Towards Cryptocurrencies

Sony Bank, the financial arm of Sony Group, is seeking a national banking license with the U.S. Office of the Comptroller of the Currency (OCC). With this license, the bank aims to conduct “certain cryptocurrency activities” through its subsidiary, Connectia Trust. According to the filing documents, Sony Bank plans to issue stablecoins pegged to the US dollar, manage reserves for these assets, and offer digital asset custody and portfolio management services. Sony's move comes amid a flurry of new financial and technology giants entering the stablecoin market in the US. Companies like Stripe, Coinbase, Paxos Trust, and Circle have also applied for a crypto banking license from the OCC. Anchorage Digital Bank is the only company to have received a full license so far. The bank, which faced a cease-and-desist order from the OCC in 2022, was finally freed from these restrictions in August of this year. This activity in the sector accelerated further with the passage of the GENIUS Act in the US. The new law established a formal framework for stablecoin issuance and trading, paving the way for many large companies from both the finance and technology sectors to enter the market. Related News: BREAKING: Things Are Calming Down in the Exchange Wars - Coinbase Makes a Listing Push on Binance Stablecoins are used as dollar equivalents in digital transactions, particularly in markets where access to dollars is limited. The total market capitalization currently stands at $312 billion. Sony Bank operates as a subsidiary of the Sony Group, but is independent of PlayStation maker Sony Interactive Entertainment. The group comprises hundreds of other companies and subsidiaries. Sony's interest in crypto is not new. Last year, the company partnered with blockchain firm Startale Group to launch an Ethereum Layer-2 network called Soneiun. The project went live in January of this year, following plans announced for a 2023 launch. Sony Bank included the following statement in its application: “In the initial phase of operations, we plan to conduct certain legally compliant digital asset transactions for national banks. These include dollar-pegged stablecoin issuance, reserve management, digital asset custody services, and asset management activities for select subsidiaries.” *This is not investment advice. Continue Reading: Sony Takes a Major Step Towards Cryptocurrencies