Sumitomo Mitsui Financial Group, a financial organization in Japan, is moving to explore the benefits of Web3 by issuing soulbond tokens.
Sumitomo Mitsui Financial Group (SMBC), a Japanese financial organization, is going to investigate the advantages of Web3 by releasing soulbond tokens (SBTs).
SBTs are referred to as digital identity tokens that represent a person’s or an entity’s traits or reputation, or a “soul,” as proposed by Ethereum developer Vitalik Buterin.
The decentralized society and Web3 are intended for these non-transferable tokens. On December 8, SMBC formally unveiled an effort in collaboration with the provider of digital assets HashPort that focuses on the usage of SBTs in real-world scenarios.
The businesses intend to study SBTs to see how they may be used in communities, workplaces, knowledge-sharing services, and decentralized autonomous organizations (DAOs).
According to SMBC, the change may be especially beneficial for people who are taking on more varied positions and personalities in society. The business declared:
“It is expected in this new society that each individual will be able to control which personality he/she displays in each community in which he/she participates. SBTs satisfy these new social needs through the use of multiple ‘souls’.”
One of the practical uses of an SBT could be a situation where a user has a role of a working adult and another role of a music fan. SMBC said:
“If this user wants to prove his/her skills and work history when changing jobs, he/she can simultaneously prove his/her identity and his/her career information associated with them by allowing his/her employer to reference the SBTs,”.
The company added that the collaboration with HashPort is a significant effort to advance the development of the Web3 economy in Japan and can be put to useful use in the future.
According to the announcement, “The two parties will also consider undertaking content business associated with NFTs and developing infrastructure for the Web3 economic zone to encourage the spread of the token business both in Japan and overseas,” the announcement notes.
SMBC, a significant financial organization in Japan, is a component of the Mitsui Group, one of the biggest business conglomerates in the world. In recent years, a number of Mitsui companies have been actively investigating blockchain and cryptocurrency tools.
According to rumors, the Japanese trading house Mitsui planned to launch ZipangCoin, a cryptocurrency backed by gold, in February. Prior to that, in March 2021, Sumitomo Mitsui Trust Bank and Securitize introduced asset-backed securities tokens.
