#Japan #Tokyo #Sunrise #Sony Bank #CauchyE

Sony Bank and CauchyE Begin Blockchain Implementation Pilot

Sony Bank, headquartered in Chiyoda, Tokyo, has teamed up with CauchyE, a Singapore-based company that specializes in modular blockchain technology. They have officially announced a new pilot program aimed at utilizing CauchyE's blockchain platform called 'Sunrise'. This pilot seeks to develop a regulatory-compliant web3 service. As part of the MyLayer Prototyping program provided by CauchyE, Sony Bank is excited to explore the potential for dedicated blockchain systems among financial institutions.

Objectives of the Pilot

The main goals of this pilot include investigating the use of dedicated blockchains in financial institutions, focusing on regulatory compliance and user protection. In collaboration with CauchyE, the pilot will assess the technical and legal challenges associated with deploying a dedicated blockchain, including the exploration of Sovereign Rollup technology and architectural considerations to prevent Force Tx. Specific objectives set for the pilot include:

• - Identifying technical and legal issues surrounding the unique blockchain's implementation in financial settings.
• - Realizing a proprietary chain dedicated to the practical applications of stablecoins.
• - Ensuring interoperability with Soneium, Sony Group’s existing blockchain technology.
• - Discussing issues pertaining to the provision of decentralized finance (DeFi) services to customers by financial institutions, which will also leverage the liquidity features of Sunrise.

Context and Relevance

As the global web3 ecosystem continues to expand, ensuring user protection has become a priority for financial institutions. Concerns surrounding money laundering, terrorist financing, and legal regulatory frameworks related to blockchain usage are growing. This pilot aligns with Sony Bank's objectives set in their May 28, 2025 press release that announced plans to enhance their operations based on a risk-based approach. The aim is to regulate the use of illicit funds while boosting the safety and convenience of blockchain technologies.

In addition, Sony Bank has made strides in expanding the web3 economy tailored to creators and fans, notably by releasing 'Sony Bank CONNECT' last year, which has gained traction among users. This dedicated blockchain pilot is also being designed with potential future integration with 'Sony Bank CONNECT' in mind, enhancing the service's overall utility.

About CauchyE and Sunrise

CauchyE has developed an innovative Level 1 blockchain called 'Sunrise', which is the only blockchain tailored for Interliquid Networks, combining Proof of Liquidity with a Data Availability layer and a Liquidity Hub. Their pioneering work on this blockchain emphasizes the need for a robust and adaptable infrastructure for future financial technologies.

Sony Bank and CauchyE's joint initiative marks a significant step in advancing the compliant use of blockchain in the finance sector, bridging the gap between traditional finance and the burgeoning world of decentralized finance. By working together, both companies aim to enhance the security, functionality, and user experience of financial operations, paving the way for a future where technology and finance coexist seamlessly.