[Exclusive Interview] Why did Sony Bank establish a web3 subsidiary? - Key persons discuss the aim of the "consulting business" | CoinDesk JAPAN

Sony Bank announced the establishment of a wholly-owned subsidiary engaged in web3-related business.

When it comes to financial institutions entering web3, stablecoins (SC) and security tokens (ST) come to mind, but what they first proposed was a "consulting" business.

Why start with consulting rather than leveraging expertise in finance? The background lies in the unique entertainment assets and technological capabilities of the Sony Group, as well as the strategy as a financial institution.

CoinDesk JAPAN conducted an exclusive interview with three key figures from the DX Business Planning Department leading this project: Mr. Kanamori, Mr. Akaishi, and Mr. Ishii. The interview delves into the core of Sony Bank's web3 strategy and the future they envision.

[Left to right: Mr. Ishii, Mr. Kanamori, Mr. Akaishi]

• Head of DX Business Planning Department: Mr. Kanno Kanamori
• Head of Web3 Promotion Section, DX Business Planning Department: Mr. Tomoya Akaishi
• Senior Manager, DX Business Planning Department: Mr. Yasumasa Ishii

Why are banks now a web3 subsidiary?

As financial institutions show signs of fully entering the web3 space, the move made by Sony Bank was unexpected.

What they chose was not to expand their business within the bank itself, but in the form of a "subsidiary." And the first business is said to be not financial services themselves, but "consulting." What could have been behind this decision?

Regarding the background of the establishment of the new company, Mr. Kanamori, head of the DX Business Planning Department, states that the response to the web3 initiatives that the Sony Group has been involved in has led to commercialization.

"In the past, we have implemented various initiatives in collaboration with Sony Group's NFT marketplace 'SNFT', and they have received a significant response."

An iconic example of this is a project that combines real bonsai with NFTs.

This project presents a model where the ownership of bonsai is sold as NFTs, while the actual cultivation and management are entrusted to professional artisans. It balances the "joy of ownership" with "liberation from the hassle of management."

Related article: The 5 million yen bonsai NFT is sold out, showing potential for Sony Group's RWA project.

This success has shown many companies the new possibilities of web3 technology. According to Kanamori, "It is precisely at such times that we have started to receive inquiries like, 'We would like to try this at our company.' We judged that this was the right timing to realize it as quickly as possible, which led to the establishment of this preparatory company."

Although there is a high interest in web3, there are entry barriers such as technical hurdles, risk management, and compliance with regulations. To respond to the increasing expectations for commercialization, the concept of establishing a specialized subsidiary has been materializing.

So, why was it necessary to establish a subsidiary instead of the main bank? The answer lies in the Japanese Banking Law.

Banks are under strict regulation due to their high level of public interest, and the businesses they can engage in are defined by law. The scheme utilized by Sony Bank is the "Advanced Company for Other Banking Business,".

[From Sony Bank's release] Mr. Kanamori explains, "The bank's main body should engage in business particularly specialized for banking, as stipulated by the Banking Act."

Furthermore, it was revealed that "within such a context, a framework called 'Advanced Other Banking Business Company' has been established within the Financial Services Agency, and under that framework, we will conduct business as a subsidiary."

The amendment to the Banking Act in 2021 allowed banks to expand advanced businesses that they cannot conduct directly through subsidiaries, with the approval of the Financial Services Agency.

[日本銀行から] According to an interview with the Bank of Japan, the new company has already completed registration based on this scheme and is preparing for the business launch in the fall of 2025.

When hearing about financial institutions entering web3, many people would think of "financial infrastructure" such as stablecoins and security tokens (digital securities).

However, the first business that Sony Bank chose was "creating use cases" through consulting.

Regarding this strategy, Mr. Kanamori stated, "First, I believe it is important to expand use cases utilizing technologies such as NFTs and to address the challenges faced by companies. By expanding use cases in this way, I want to contribute to the overall growth of the web3 market."

Furthermore, regarding the relationship between financial infrastructure and use cases, he stated, "I see them as two wheels. By not only providing financial infrastructure but also offering use cases together, the market will finally expand."

What is Sony's unique web3? - The strength of "Trinity"

The web3 consulting market has already seen the entry of major advertising agencies such as Dentsu and Hakuhodo, as well as startups like Pacific Meta.

What kind of uniqueness will Sony Bank's new company demonstrate among them?

What emerged from the interviews was the Sony Group's threefold strengths in "entertainment," "technology," and "finance."

The source of the new company's competitiveness lies in the vast assets held by the Sony Group.

Firstly, "entertainment assets." Global IPs (intellectual properties) such as anime, music, movies, and games will become powerful content in web3 projects.

Mr. Akaishi, who is promoting the bonsai NFT project, mentions the potential, stating, "The power of entertainment held by the Sony Group can be utilized in various fields."

As a specific example, there is an NFT project in collaboration with LiSA, who is affiliated with Sony Music Artists. In this project, NFTs exclusive to attendees are distributed in conjunction with the nationwide arena tour.

We launched initiatives to provide exclusive 3D rooms accessible only to NFT holders, as well as digital content such as live photos, to deepen engagement with fans.

Secondly, "technical capabilities." High-resolution 3D scanning technology used in the Bonsai NFT project, such as "XYN (Jin)," is a symbol of that.

[リアリティが追求された盆栽NFT]By using this technology, it is possible to digitize objects without compromising their real texture and details, thus adding new value.

Mr. Akashi stated, "The sense of ownership in the digital world is bland if it's just the world you can see when you open your smartphone. We are aiming to expand on that aspect," suggesting that Sony's technology seeks to create deep experiential value beyond mere digitization.

And thirdly, it is the "reliability of financial institutions." The web3 industry faces challenges such as hacking and fraud risks, as well as complex regulations.

In this regard, he stated that the expertise cultivated by Sony Bank through initiatives such as stablecoin proof-of-concept experiments will be a strong point unique to financial institutions.

"In order for financial institutions to issue tokens and the like, it is necessary to proceed with a risk-based approach while conducting various due diligence (procedures to investigate the value and risks of the investment target). In this process, we have accumulated quite a bit of know-how. This rare know-how will become a very important element in achieving mass adoption of web3."

So, how will we leverage these strengths to undertake specific projects? The first target mentioned by Mr. Kanemori is "regional revitalization."

"We have already received concrete inquiries from companies engaged in regional revitalization projects and financial institutions," said Mr. Kanamori. The regional revitalization utilizing web3 envisioned by the new company is not just a mere digital stamp rally. Mr. Kanamori points out two important axes for expanding experiential value.

"One is the 'sense of ownership.' The theme is the fusion of digital and real, and just like in the bonsai event, it's about how to create that sense of ownership through technology. The other is 'position, location.' The core idea is that something changes when you actually go to a place like this."

For example, when visiting a place that has become a holy land for anime, you can receive a special NFT that can only be obtained there. Furthermore, by holding that NFT, not only does it enhance the sense of "ownership" in the digital realm, but it also connects to a "relationship population" that continues to engage with the region.

He stated, "Regional revitalization, entertainment, and financial infrastructure. Only when these three are combined does it make sense."

The projects undertaken by the new company will be developed by maximizing the existing technological infrastructure and user touchpoints owned by the Sony Group.

At this stage, the options for the blockchain infrastructure include "Soneium" developed by Sony Group and "SNFT", an NFT marketplace that supports "Polygon".

Mr. Kanamori stated, "We will select the appropriate blockchain based on how our customers promote and the perspective of the measures involved," indicating a flexible approach tailored to the characteristics of the project.

The main point of contact for delivering all these experiences to users is the smartphone app "Sony Bank CONNECT." This app features a viewer function for browsing and managing NFTs.

Related Article: Sony Bank Releases Web3 Entertainment App 'Sony Bank CONNECT'

Mr. Kanamori explained the division of roles for each service by stating, "(The issuance of NFTs itself) is done on Sony Group's SNFT. Sony Bank CONNECT is simply retrieving the information of the NFTs that are on SNFT through API connection and displaying it on the app."

In this way, the new company will not operate independently but will serve as a command center that connects diverse assets within the Sony Group to provide optimal solutions for clients.

This close collaboration within the group will be the source of the new company's competitive advantage.

The Future of Web3 as Seen by Sony Bank - A Path to Market Health and Mass Adoption

What kind of future is Sony Bank envisioning in the new realm of web3? What was discussed in the interview was a calm analysis of the market and an awareness of its role as a financial institution.

The NFT market is facing a significant adjustment phase.

The NFT marketplace "X2Y2," which once recorded the highest trading volume in the world, will close in April 2025. Additionally, the service termination of NFT exchanges continues in Japan, including tofuNFT and the "ANA GranWhale NFT MarketPlace" operated by the ANA Group.

Regarding this market environment, Mr. Kanamori analyzes that "I feel that NFTs are in a state where excessive expectations have converged. From here, as they are really used in conjunction with use cases, the ways they are used will spread even more."

While the market for art and collectible NFTs, which was centered around speculative trading, is shrinking, the number of practical use cases for NFTs is steadily increasing.

For example, Dentsu is launching the "Ame-chan NFT" project, which functions as a certificate of participation for student internships.

This is an attempt to link NFTs not just as image data, but to specific utilities (practicality) such as proof of participation and access to the community.

Related Article: [Exclusive] The NFT of Ame-chan Starts at the Expo Pavilion "Banquet"! The Future of "Kizuna" Opened by Dining Internships and Web3

Sony Bank's current initiative aligns perfectly with the market trend that questions this "practicality."

To achieve mass adoption of web3 in society, there are many challenges. These include the complexity of UI/UX related to wallet management and the handling of private keys, as well as the lack of transparency in security and regulations.

Regarding this point, Mr. Akaishi expressed the view that regulatory development is essential for the healthy growth of the market. "Until now, things that have been done in the so-called gray zone have encountered difficulties due to regulations and other factors. It is very important to move to the next step under clearer guidelines."

Furthermore, he stated about the future that web3 aims for, "Basically, a worldview where everything is tokenized will be necessary."

And as a possibility beyond that, "generally speaking, it's something like token graph marketing. I believe that by tokenizing everything, we can discover new value that arises from it and take the next step," he mentioned, referring to a future image where data and value are interconnected.

One of the key persons responsible for the business operations of this new company, Mr. Ishii, Senior Manager of the DX Business Planning Department, said, "The new company has just started, and we are now at the stage of moving forward with discussions. While advancing the business, we want to explore new possibilities and play a part in Web3-related businesses."

The establishment of a web3 subsidiary by Sony Bank is an attempt to transcend the framework of the financial business that the bank has cultivated so far, bringing together the three assets of entertainment, technology, and finance held by the Sony Group.

Mr. Kanamori stated about the future outlook, "Until now, NFTs were NFTs, STs (Security Tokens) were STs, and SCs (Stablecoins) were SCs. I believe that the true value lies in the financial infrastructure of web3, where these various elements can be utilized in a complex manner."

Sony Bank has already built a track record in the financial infrastructure domain by providing security tokens in collaboration with Mitsui & Co., and conducting proof-of-concept experiments for stablecoins jointly with SettleMint and Polygon.

Related articles: Mitsui & Co. Digital Asset Management and Sony Bank begin collaboration on asset management service "ALTERNA" using digital securities.

Building on the trustworthiness as a financial institution, we will accumulate real use cases through consulting and win the trust of the market.

And beyond that, a vision of building a comprehensive web3 platform that integrates financial infrastructures such as ST and SC emerges.

In the fall of 2025, Sony's challenge to create a new "emotional experience" will begin.