Sony Network Communications invests $3.5M into Japanese Web3 firm

Getting your Trinity Audio player ready...

Sony Network Communications, a subsidiary of Sony, has partnered with blockchain firm Startale Labs to float a suite of solutions for Web3 developers and users.

The deal will see Sony Network invest $3.5 million into establishing a foundation to push for an increase in Web3 adoption metrics, according to Fortune. Sota Watanabe, CEO of Startale Labs, described the collaboration as one that will improve the linking of real-world assets with the digital asset ecosystem.

“Developers and users need to understand blockchain tech stacks when interacting with Web3. We want to provide smooth experiences for general users and this tool will allow them to interact with the space without knowing it,” he said.

Under the deal, Sony Network director Jun Watanabe will take up a role as an executive director at Startale Labs to encourage a seamless integration between both entities. Pundits say that both firms can lean on their strength to advance Web3 adoption to new heights in Japan following a rough patch marked by stiff regulation and falling asset prices.

“With this capital partnership, we are merging Startale Labs’ knowledge and technical capabilities in Web3 with the experience and business fields cultivated by Sony Network Communications to create the infrastructure necessary to facilitate global Web3 adoption,” the Sony Network director stated.

This is not the first time both entities are striking up a Web3 partnership, as back in February, Sony and Startale Labs announced the creation of a Web3 incubator. The incubator targeted early-stage start-ups building with DLT designed to provide “large-scale and comprehensive support.”

Sony Network and Startale Labs have extensive Web3 experiences through their parent companies. Sony’s PlayStation has filed multiple Web3 patents, while Sony Music has dabbled in non-fungible tokens (NFTs) to offer artists new ways to connect with their fans.

Japan’s chaotic digital asset scene

After enjoying a blistering run of form in digital currencies, Japanese regulators tightened the noose for the industry following a string of tragedies. Another attempt to open the doors to international players suffered a heavy flow after Coinbase (NASDAQ: COIN) announced its exit from the country.

On the regulatory side, authorities are keen on imposing stricter anti-money laundering (AML) measures for digital assets. While the move may be seen as an attempt to muzzle innovation, the country has announced the removal of tax on paper gains for digital token issuers.

Watch: Which blockchain will dominate Web3? Not Ethereum, InPeak’s Somi Arian says