Japan’s Soulbound tokens will be used by Sumitomo Bank, the second largest bank for identity verification.

Sumitomo Bank, the second largest bank in Japan, intends to test Soulbound tokens to verify identity. Japan has made significant progress in web3 experimentation and research. Sumitomo Bank has announced that it will use Soulbound tokens to verify identities. Web3 is the new generation of the Internet, leveraging blockchain technology to offer decentralized protocols through various cryptocurrency tokens. The best Web3 coins take advantage of these technologies to provide multiple use cases. But will Japan’s Soulbound tokens bring a slow death to old web3 coins?

Sumitomo Mitsui Financial Group (FG) is collaborating with Hashport for this purpose, as a result of a discussion that began in July 2022. On December 8, the two parties announced a business agreement.

Soulbound tokens will initially be used solely for identity verification, as per the bank’s plans. He intends to collaborate with other companies to help them interact with their users through the token.

According to SMBC’s announcement, the firm has partnered with digital asset firm HashPort to explore “practical” use of SBTs for its clients. The first phase of the exploration will involve SMBC Group issuing SBTs on a trial basis with technical support from HashPoert Group. This phase will last until the end of March 2023.

The SMBC Group and HashPort Group have been in talks about the new company since July 2022, with the pair focused on “developing a safe and secure Web3 economic zone.”

The second phase of the trial will consist of exploring different scenarios in which SBTs can be used as evidence of behavior and employment history. It will also include tests designed to produce case studies demonstrating the utility of SBT alongside companies wishing to develop and market fan tokens.

The overall purpose of the collaboration is to conduct research on SBT to discover its practical uses for communities, jobs, knowledge sharing services, and decentralized autonomous organizations (DAOs).

According to SMBC, its partnership with HashPort can help facilitate the widespread adoption of blockchain technology and non-fungible tokens in Japan and around the world.

“Partner with HashPort Group to conduct actionable SBT research in [the] The future is a significant initiative by SMBC Group to help the Web3 economy take root more widely in Japan,” the company said. “In addition, the two parties will also consider launching NFT-associated content businesses and developing infrastructure for the Web3 economic zone to foster the expansion of token business both in Japan and abroad.”

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