
Sony Bank, the online banking subsidiary of the media company, is running decentralized finance (DeFi) proofs of concept (PoCs) as part of the Japan Financial Services Authority’s (FSA’s) FinTech PoC Hub.
In particular Sony Bank is exploring the use of permissionless blockchains and automated market makers (AMMs), which take on the role of a decentralized exchange. It wants to prove to the regulator that it can comply with anti money laundering provisions. Hence, Sony Bank will show that AMMs can be used by certain verified customers using hosted wallets or self-hosted wallets that have been through compliance procedures. Additionally, it will demonstrate that token transfers can be restricted to known wallet addresses.
The context for the experiments is a DeFi Study Group to explore enabling clients to use AMMs for the trading of regulated security tokens against stablecoins.