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Why SONY Invests In Token-Issuance Tech Provider Securitize

February 7, 2020
Ross Peili


Why SONY Invests In Token-Issuance Tech Provider Securitize

Sony Corporation’s Financial Ventures division recently invested in Japanese token-issuance tech provider Securitize, who had previously raised over $14mn in funding from domestic giants such as the Mitsubishi-led MUFG and Nomura Holdings among others. 

Not only does Securitize offers digital securities under the form of STOs, but it is a Security Token Offering (STO) on its own, making Sony one of the first tech giants to invest directly into a cryptocurrency fundraising project.

“Securitize is expertly leveraging blockchain technology to create a new asset class with astonishing abilities.” says Junji Nakamura, director and board member at Sony Financial Ventures.

After Japan’s recent regulatory concerns about traditional ICOs that most of the time are backed by nothing more than thin air, STOs see increased adoption in the country, and Securitize is one of the leading players in the field.

Securitize had previously received a seven-figure investment from Japan’s SBI Investment last year, according to crypto outlet the Block, which cites that the overall investment power the firm has accumulated surpasses $30 million in USD terms.

Strict Japanese regulations make fintech projects like Securitize appeal to traditional investors

Besides the fact that Japan is now actively investigating the opportunity to develop and launch a national digital currency in association with the Liberal Democratic Party (LDP), the government of Japan, and of course the central bank of Japan, it has proposed some of the most strict rules against public cryptocurrencies out there. 

More specifically, the Japanese Financial Services Agency (FSA) has proposed that investors who part their fiat to engage in public cryptocurrency exchanges and initial coin offerings will be eligible to gain an x2 (100%) return regardless of the performance of the respective token.

For some, this might sound outrageous, but for Japanese investors and monetary power-brokers, it makes things easier to monitor, handle, and regulate. 

At the same time, the FSA believes that in fact, this method will attract more academic investors as they would never trust a project that has Bitcoin-like fluctuations. 

On the other hand, Securitize and other analogous projects have tapped into the regulatory-friendly sphere of STOs, where things are not only crystal-clear when it comes to documentation and compliance, but the actual company is also backed by actual assets, whether that is fiat currencies and/or other physical and digital assets.

Why Sony is getting involved with the DLT scene, and why with Securitize

For starters, Sony is a multimedia company which’s projects range from TV shows, and Hollywood-scale movies, to music publishing and the booming videogame industry, where Sony’s Playstation machine is maintaining a healthy monopoly on a global scale for several decades straight.

There are a lot of top-shelf videogame publishers that are examining the possibilities of a blockchain-powered economy within their game’s ecosystem, and Sony should not be a surprise entry, with many speculating that the newly-introduced PS5 will feature some next-gen micropayment functions. 

We have previously seen the Chinese giant Tencent utilizing tokenomics in many of their games, including the popular MOBA Mobile Legends, where multiple crypto-like assets are available for purchase and use within the game’s realm.  

Tencent is also one of the companies behind AliBaba’s blockchain platform, it is the publisher of TenPay, one of China’s leading payment apps, and it is also one of the confirmed tech giants to distribute China’s national CBDC the DC/EP when it’s released. 

Now, I am not saying that Sony wants to be a Tencent of Japan, but it makes absolute sense to speculate about some sort of a blockchain-powered videogame economy, especially when the company is investing in a token-issuance company.

I am more than curious to hear your take on why would Sony or any other multimedia firm invests in a token-generator startup that is already in the range of several decades of millions in the comments below.