Sumitomo Mitsui Financial Group (SMBC), the Japanese financial platform, wants to explore the Web3 ecosystem by issuing SoulBound tokens (SBTs) for the decentralized society. The Ethereum network’s founder, Vitalik Buterin, proposed the SBT as a digital identity currency representing the status of an individual or entity.
In addition, the SBT tokens cannot be transferred and are created solely for the platform’s Web3 and decentralized ecosystem. According to the SMBC official statement on December 8, the initiative is focused on the use case of SBT in collaboration with the crypto firm, HashPort.
The firms will study SBTs to determine their real-life use cases for communities, platforms, and decentralized autonomous organizations (DAOs). SMBC revealed that the new move would serve individuals looking to assume several roles and personalities within a community.
The company statement reads, “The expectation in the Web3 ecosystem is that individuals can control their chosen personality in each community they belong.” Hence, individuals can achieve their social needs using several ‘souls with SBTs.
The primary practical application of the SBT could be found in a state where users can assume dual roles simultaneously.
If a user wants to prove a skill or a work history when changing a profession, they can verify their identity by allowing their employer to reference the SBT platform.
According to the firm, the partnership with HashPort can be useful for practical purposes in the future. It will be a worthwhile project to boost the digital economy in Japan and Asia.
The SMBC announcement added that the two parties are considering developing a content business aligned with their NFT drive and the Web3 ecosystem. In addition, the initiative encourages the expansion of the token business in Japan with a focus on Asia.
Exploring Blockchain Technology
As one of the financial giants in the country, SMBC has been actively exploring blockchain technology and cryptocurrency for some time. It is a part of the Mitsui Group with several subsidiaries around the world,
In February 2022, the Mitsui Group’s trading arm announced its intention to launch a gold-pegged crypto asset, ZipangCoin. Similarly, in March 2021, the Sumitomo Mitsui Trust Bank rolled out an asset-backed securities coin in partnership with Securitize.
Back in 2021, a group of private banks in Japan explored blockchain technology to digitize bank transactions to evaluate use cases for digital assets.
The move was to make transactions cheap and quick. The drive is also geared toward creating tokens that can be universally accepted and can be seen as a climate-friendly digital currency.
With blockchain, the concern has been its vast energy demand, but the group intends to develop a consensus mechanism that uses less energy than other crypto assets.
In recent months, Japan has seen huge blockchain technology investments from established companies. The rapid expansion in the Web3 space means that the new SBT asset would benefit the country’s digital economy drive.
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