Despite a global downturn in the market for non-fungible tokens (NFTs), Japan remains actively engaged in the sector. Sony Bank recently introduced its Sony Bank CONNECT app, enabling users to collect and trade NFTs received through promotional activities. The app also offers features allowing clients to display their favorite NFTs or collections on their phone’s home screen, and create gallery-style rooms for their NFTs.

Overcoming Initial Setbacks

The launch of Sony Bank CONNECT was not without challenges. Initially, users faced issues with not receiving SMS messages required for registration. However, Sony Bank quickly addressed and resolved this problem, ensuring a smoother experience for its clients.

Leveraging Intellectual Property

Sony has a significant advantage in the NFT market due to its vast array of intellectual property (IP) assets, courtesy of its subsidiaries like Sony Pictures, Sony Music, and Sony PlayStation. This extensive IP portfolio provides Sony with numerous opportunities to create unique and valuable NFTs. However, Sony’s approach to NFT rights contrasts with some of the most popular NFT collections, such as the Bored Ape Yacht Club (BAYC), which allow users considerable freedom to commercialize their NFTs. Sony’s terms and conditions are much more restrictive in comparison.

Integration with SNFT Marketplace

The Sony Bank CONNECT app is integrated with the Sony Group’s NFT marketplace, SNFT. This marketplace operates on the Polygon public blockchain, distinguishing it from some security tokens that utilize private blockchains to align with regulatory preferences. SNFT also collaborates with various events and artists, providing NFTs as rewards. For example, earlier this year, Sony Bank participated in a US $1 million green finance security token issuance using the Securitize private blockchain. Investors who responded to a survey regarding this initiative were rewarded with NFTs.

User Experience and Future Plans

While some applications attempt to simplify the user experience by hiding blockchain functionalities such as gas fees, SNFT opts for transparency. It does, however, facilitate user access by allowing on-ramping with credit cards.

Looking ahead, Sony Bank has plans to issue stablecoins on the Polygon blockchain. Additionally, a Sony group subsidiary recently acquired Amber Japan, a cryptocurrency exchange, subsequently rebranding it as S.BLOX. This acquisition further underscores Sony’s commitment to expanding its presence in the cryptocurrency and blockchain sectors.

In summary, while the global NFT market faces challenges, Sony Bank’s innovative approach with the CONNECT app and its strategic use of the SNFT marketplace highlight its dedication to exploring and expanding the potential of NFTs within Japan and beyond.