The second-largest financial institution in Japan, Sumitomo Financial institution, plans to trial soulbound tokens for identification verification. Japan has been making large strides in web3 experimentation and analysis.
Japan’s second-largest financial institution Sumitomo Financial institution has introduced that it’s going to use soulbound tokens to confirm identities. The Sumitomo Mitsui Monetary Group (FG) is collaborating with Hashport for the aim, which is the results of a dialogue that began in July 2022. The 2 events introduced a enterprise settlement on Dec. 8.
The financial institution has a couple of use circumstances lined up for the token, although initially, it will likely be used purely for identification verification. It expects to cooperate with different firms to assist them interact with their customers via the token.
It affords an instance of how the soulbound token can be utilized to confirm a consumer when they’re switching jobs. Moreover, it states that the token can be utilized to confirm the background of the person when they’re making the change.
The launch of the soulbound tokens is the primary section within the collaboration between the 2. The financial institution will difficulty the token on a trial foundation. Hashport will present help for Sumitomo Mitsui till March 2023.
The usage of soulbound tokens is a bid by the 2 events to create a “secure and safe web3 financial zone.” Web3 is a sector that Japan has proven lots of curiosity in, and the federal government is eager on leveraging associated applied sciences.
Soulbound Tokens Gaining Recognition
Soulbound tokens made all of the headlines earlier this yr when Vitalik Buterin and others launched a paper on it. Within the paper, the authors spoke of a soulbound token, which represents an individual’s identification within the digital world. It could basically confirm credentials to permit them to take part in varied actions.
Soulbound tokens are an evolution of NFTs. They’re distinctive — however they can’t be transferred. As such, they don’t have any actual worth out there. They’ve a number of advantages, together with doubtlessly decreasing the chance of fraud within the crypto house.
Japan Ramping Up Web3 Efforts
The SMCG’s determination to trial soulbound tokens is extra proof that entities in Japan are keen to utilize web3. The Japanese authorities has inspired the event of this house, hoping to draw enterprise and enhance the financial system.
The Japanese Ministry of Financial system has even launched a web3 workplace targeted strictly on web3 coverage. The Japan Digital Ministry may even create a DAO to develop an understanding of how the know-how works.
Particular person firms which might be making headway are NTT and Nomura. The previous is Japan’s largest telecom firm, and the latter is a significant monetary firm.