Image credit: pymnts.com

 

Sony Bank, one of Japan's largest online banks, has received conditional approval from the U.S. Office of the Comptroller of the Currency, or OCC, to establish a national trust bank.

 

According to a press release from Sony Bank, the establishment of the trust bank, named Connectia Trust, is intended to prepare for the commercialization of businesses related to the issuance and management of U.S. dollar-denominated stablecoins in the United States.

 

"The establishment of this trust subsidiary is intended to contribute to the development of a medium to long-term business foundation for the Sony Financial Group's digital asset businesses," Sony Bank said in a press statement.

 

Although Connectia is being established this month, with Sony Bank committing an initial capital investment of $40 million (equivalent to JPY 6.4 billion), the trust bank will not begin full operations or stablecoin issuance until 2027. That is contingent on receiving final approval from the OCC after meeting all regulatory requirements.

 

Sony Bank's approval comes at a time when several other financial institutions, including crypto companies, have sought to establish national trust banks. In December last year, stablecoin issuer Circle received conditional approval to establish a national trust bank before securing final approval this week. Other companies that have received similar conditional approval include Ripple, Paxos, Fidelity, and BitGo.

 

By seeking an OCC national trust charter, companies can gain greater regulatory clarity and credibility to issue and manage U.S. dollar-backed stablecoins, provide custody services, and operate under a single national regulatory framework that preempts many state licensing requirements. An OCC charter can also help companies build trust among institutional clients, enabling them to expand their services to a broader range of customers.