- The Sumitomo Mitsui Banking Corporation (SMBC) has declared its intention to diversify into the non-fungible tokens (NFTs) and Web3 platforms sectors of the digital asset market.
- To create a special service platform, SMBC intends to combine its corporate data with HashPort’s Web3 technical capabilities.
The Japanese banking colossal Sumitomo Mitsui Banking Corporation (SMBC), which has over 463 branches worldwide and $2.1 trillion in assets, previously announced its intention to join the realm with Web3 and NFT projects as many traditional banking organizations around the world are thinking about joining the digital assets industry.
Along with short, the SMBC Group, which runs one of the biggest banks in Japan, reportedly plans to create a “token business lab” to explore the intention of exploring token businesses like NFTs.
To order to enter the digital assets market, SMBC disclosed that they are getting ready to open a token business lab with the assistance of blockchain startup HashPort, which is well-known in Japan for providing tokenization and listing services.
To create a special service platform, SMBC intends to combine its corporate data with HashPort’s Web3 technical capabilities. In addition, the bank stated, “We aim to create an ecosystem encompassing numerous players in the NFT domain. We believe that these initiatives will help Web3 gain more traction in Japan.”
A business token lab that “engages in polls, research, and demonstration trials linked to the marketing of the token business” will be established as a result of the agreement.
As a result of its partnership with HashPort, SMBC now plans to offer “commercialization support and advisory services to customers considering the token industry, including the issue of NFTs.” This means that the company’s services go beyond simple digital custody.
Mitsubishi UFJ Financial Group (MUFG), revealed in March that it had teamed with Animoca Brands to create NFT operations. It appears that SMBC Group is also doing the same. Through this partnership, Animoca Brands’ expertise in digital content, intellectual property rights, and NFT market management will be used by MUFG Bank to assist the growth of the NFT industry.
The goal of MUFG Bank is to defend Web 3.0, which includes the thriving market for Non-Fungible Tokens, by promoting the creation and listing of NFTs and offering services for their purchase, such as storage, among other things.
In addition, SMBC is thinking about using its extensive user base and global visibility to launch its own token business in the future. They are not, however, the first Japanese company to do so in the Web3 and NFT domains. Prior to this, the financial behemoth SBI joined the market by purchasing an NFT company and launching their NFT projects under the name SBINFT.
The Japanese government passed a law last month defining stablecoins as digital coins that must be linked to the yen or another fiat currency and giving holders the ability to redeem them for their face value. This law clarifies the legal position of stablecoins.
The Financial Services Agency (FSA) of Japan produced the law, which was initially slated to be introduced in late 2021. It was later accepted by the House in mid-March of this year and ultimately approved by the House of Councillors plenary session. This definition is simply the beginning of the development of a comprehensive legislative structure on stablecoins that will take effect within the upcoming year.