Close Menu
Crypto Valley Journal
    Facebook X (Twitter) Instagram
    Crypto Valley Journal
    • Hot Topics
      • News
      • Minds
    • Focus
      • Background
      • Blockchain
      • Legal & Compliance
      • Non-Fungible Token (NFTs)
    • Investing
      • Markets
      • Financial Products
      • Decentralized Finance (DeFi)
      • Exchange overview
    • Education
      • Basics
      • Glossary
      • Politicians on crypto
    • Statistics
      • Bitcoin-ETF-Flows
      • Ethereum-ETF-Flows
      • Crypto market data
      • On-chain data
    • Academy
      • Overview
      • Part 1: Blockchain
      • Part 2: Money
      • Part 3: Bitcoin
      • Part 4: Cryptocurrencies
      • Part 5: Decentralized Finance
      • Part 6: Investing
    • English
      • Deutsch
    Crypto Valley Journal
    You are at:Home » Focus » Blockchain » Japan’s second-largest bank moves further into Web3
    Japan's second-largest bank (Sumitomo) moves further into Web3

    Japan’s second-largest bank moves further into Web3

    By CVJ.CH Content Partner BeInCrypto on 9. December 2022 Blockchain

    Despite the prevailing bear market in the crypto sector, the second-largest Japanese bank (Sumiromo) wants to further establish itself in Web3. Therefore, it intends to issue its own soulbound token to verify identities in a new way.

    Japan’s second-largest bank Sumitomo Bank has announced that it will use soulbound tokens to verify identities. The Sumitomo Mitsui Financial Group (FG) is collaborating with Hashport for the purpose, which is the result of a discussion that started in July 2022.

    Identity verification enabled through blockchain

    The bank has a few use cases lined up for the token, though initially, it will be used purely for identity verification. It expects to cooperate with other companies to help them engage with their users through the token. Sumiromo offers an example of how the soulbound token can be used to verify a user when they are switching jobs. Furthermore, the bank states that the token can be used to verify the background of the individual when they are making the switch.

    The launch of the soulbound tokens is the first phase in the collaboration between the two. The bank will issue the token on a trial basis. Hashport will provide support for Sumitomo Mitsui until March 2023. Although the use of soulbound tokens is a bid by the two parties to create a “safe and secure web3 economic zone." Web3 is a sector that Japan has shown a lot of interest in and the government is keen on leveraging related technologies.

    Soulbound tokens gaining popularity

    Soulbound tokens made all the headlines earlier this year when Vitalik Buterin and others released a paper on it. In the paper, the authors spoke of a soulbound token, which represents a person’s identity in the digital world. It would essentially verify credentials to allow them to participate in various activities.

    Soulbound tokens are an evolution of NFTs. They are unique but they cannot be transferred. As such, they don’t have any real value in the market. They have several benefits, including potentially reducing the risk of fraud in the crypto space.

    Ray Dalio’s Bridgewater Associates Minds

    Star investor Ray Dalio considers Bitcoin inferior to gold

    Bitcoin overtakes gold in the US: per River's report, 49.6 million Americans own Bitcoin, while just 28.8 million still hold gold. Background

    Bitcoin overtakes gold among US investors for the first time

    S&P and Pantera launch the S&P Pantera Index, a crypto benchmark of 18 constituents that excludes Bitcoin for lack of protocol revenue. Financial Products

    New S&P Pantera Index leaves Bitcoin out entirely

    The Chainalysis Crypto Crime Report puts illicit activity below 1% of on-chain volume, countering the myth of Bitcoin as a criminal currency. Basics

    Myth: Bitcoin and cryptocurrencies mainly serve criminal activity

    Ray Dalio’s Bridgewater Associates Minds

    Star investor Ray Dalio considers Bitcoin inferior to gold

    Bitcoin overtakes gold in the US: per River's report, 49.6 million Americans own Bitcoin, while just 28.8 million still hold gold. Background

    Bitcoin overtakes gold among US investors for the first time

    Japan ramping up web3 efforts

    The SMCG’s decision to trial soulbound tokens is more evidence that entities in Japan are eager to make use of web3. The Japanese government has encouraged the development of this space, hoping to attract business and boost the economy.

    The Japanese Ministry of Economy has even launched a web3 office focused strictly on web3 policy. The Japan Digital Ministry will also create a DAO to develop an understanding of how the technology works. Individual companies that are making headway are NTT and Nomura. The former is Japan’s largest telecom company and the latter is a major financial company.

    Share. Facebook Twitter LinkedIn Email Telegram WhatsApp

    About the author

    CVJ.CH Content Partner BeInCrypto
    • Website

    BeInCrypto is a news website founded in August 2018 that specializes in cryptographic technology, privacy, fintech, and the Internet — among other related topics. The primary goal is to inject transparency into an industry rife with disingenuous reporting, unlabeled sponsored articles, and paid news masquerading as honest journalism.

    Related Articles

    olvo Group is testing a cryptocurrency on a closed blockchain network to settle payments with its material and transport suppliers.

    Volvo Group tests its own cryptocurrency for suppliers

    17 banks across six continents are piloting cross-border payments with tokenized deposits on the Swift Blockchain Ledger 24/7.

    Swift launches blockchain ledger for 17 major banks

    SBI Holdings acquires Bitbank for USD 288.6 million, becoming Japan's largest crypto exchange operator by assets under management.

    SBI Holdings acquires Bitbank for USD 290 million

    The 21st EU sanctions package hits Russia and can now block the crypto services of entire third countries for the first time.
    24. July 2026

    EU sanctions package targets crypto services of entire third countries

    Kazakhstan's crypto tax exemption by presidential decree makes all trading income on licensed, regulated platforms completely tax-free.
    24. July 2026

    A new crypto hub? Kazakhstan grants tax exemption by decree

    Nine institutions including BlackRock and Coinbase launch the Bitcoin Security Consortium, pledging USD 15 million for Bitcoin's security.
    23. July 2026

    Quantum threat: BlackRock and other institutions launch Bitcoin Security Consortium

    twitter image button instagram image button linkedin image button youtube image button

    About Crypto Valley Journal
    About Crypto Valley Journal

    On the pulse of the movement

    • Academy
    • Contact
    • Advertising
    • About us
    • Partner
    • Imprint
    • Privacy
    • Disclaimer
    Search

    Type above and press Enter to search. Press Esc to cancel.