When Gaming Giant Wants to Issue Dollars

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Introduction

Welcome to the Tokenized newsletter, brought to you by the creators of the Tokenized Podcast Simon Taylor of Fintech Brainfood, Pet Berisha of Sporting Crypto, and Shwetabh Sameer of Molten Ventures.

We are the newsletter for institutions that need help preparing for a Tokenized future.

We run through the headlines every week, what it means for you and a market readout. Always with an institutional, business-focused perspective. 

Join us every week as we meet your Tokenization needs.

Simon’s Market Readout 💬 

We've been through a decade where no new banks were being formed and no new charters were being given out. We were being through a decade in which financial institutions were told they potentially couldn't have any digital asset activity. That's all changing now. That's really starting to change.

The FDIC just announced they're going to publish an application framework later this month and a proposed rule to implement the GENIUS Act early in the next year, in 2026. This is lightning fast by rulemaking standards - these things can take a decade. And whilst a proposed rule early in the new year is not a completed rule, a proposed rule is still subject to people applying for comments and maybe subject to various large trade bodies submitting pushback on the nature of the rule. The pace of this change is really quite astonishing.

And it should be read alongside something else the FDIC announced, which is they're also looking at ways to improve the de novo deposit insurance application process. It won't escape your attention that lots and lots of stablecoin issuers are applying for bank charters. So they're really starting to look at what innovative business models and new banks are out there, but require deposit insurance to satisfy all of the requirements of being a bank.

But this is really interesting, because they're looking at industrial loan companies (ILCs) and their parent entities. ILCs are banks that only serve businesses - they don't serve consumers. These ILCs, a lot of them based out of Utah, quietly support most of the big FinTech businesses out there, from Square to Intuit to a lot of the BNPL providers. If something interesting is happening in FinTech, it's happening with these ILC banks.

It's a much more open-minded approach - withdrawing statements, including one that suggested using public distributed ledger systems was inconsistent with safe and sound banking practices.

Now you put all of this together, and what we potentially see is new chartered banks coming to market that can issue stablecoins and use public blockchains. And there will be rules in the road. Passing a law is one thing. Passing rules is an entirely different undertaking.

Stories You Can't Miss 📰

🚀 Sony Bank Files for US Stablecoin License, Eyes 119 Million PlayStation Users

Sony Bank has filed with the OCC to establish a national trust charter through subsidiary Connectia Trust, positioning the Japanese tech giant to issue a dollar-backed stablecoin under federal oversight. The stablecoin will be built on infrastructure from Bastion, an NYDFS-regulated stablecoin-as-a-service provider backed by Coinbase Ventures, a16z, Samsung, and Sony's own innovation fund.

Key Points:

• Sony Bank applied for a US banking license in October 2025 and plans to launch the stablecoin by fiscal year 2026

• Connectia Trust will issue the USD-pegged token, hold reserves in cash or Treasuries, and provide digital asset custody services

• The stablecoin targets payments across Sony's entertainment ecosystem: PlayStation subscriptions, in-game purchases, anime streaming via Crunchyroll, movies and music

• Sony’s Game & Network Services segment (majority being PlayStation) generated ~$6.3 billion in Q1 2025 alone, with digital sales historically comprising 79% of game purchases - billions flowing through credit card rails annually

• PlayStation Network has ~119 million monthly active users; Crunchyroll adds another 17 million paid subscribers

The Tokenized Take:

Sony isn't a fintech. It isn't a crypto company. It's a ~$170 billion consumer electronics and entertainment conglomerate with ~136 million monthly users. When a company of this scale files for a federal stablecoin license, the conversation shifts from "will mainstream brands adopt stablecoins?" to "how quickly will they move?"

The strategic logic is straightforward. Every PlayStation subscription, every Crunchyroll payment, every in-game skin purchase currently routes through Visa or Mastercard at 2-3% interchange. Sony just signaled its intent to build around that. A proprietary stablecoin settles instantly, costs fractions of a cent, and keeps users inside Sony's ecosystem. The margin recapture opportunity on billions in annual digital payments is substantial.

The GENIUS Act made this possible. Before July, a Japanese bank seeking to issue dollar stablecoins in the US faced regulatory ambiguity that made the risk-reward unappealing. Now there's a defined pathway: apply for OCC charter, hold reserves in Treasuries, submit to federal oversight. Sony is following the playbook. And they've been building toward this for months. Soneium, their Ethereum L2, launched in January. BlockBloom, their Web3 subsidiary, was established in June. The stablecoin filing completes the stack.

The Bastion partnership shows the emerging infrastructure model. Rather than building stablecoin operations from scratch, Sony plugs into Bastion's regulated stack - issuance, reserve management, custody, compliance - and focuses on what it does best: distribution. Bastion handles the plumbing; Sony brings ~136 million users. This is how stablecoin adoption scales.

Consider where this sits on the adoption curve. We've watched crypto-native firms like Circle and Tether build the market. We've seen fintechs like PayPal and Stripe integrate stablecoins into payment flows. Now a consumer brand is seeking federal licensing to issue its own token. The early majority phase is here.

The closed-loop model mirrors JPMorgan's playbook with JPM Coin - start with internal settlement, prove the infrastructure works, then expand. Sony's stablecoin will likely begin as ecosystem-only: PlayStation to PlayStation, Crunchyroll to Sony Music. But if this works, expect Disney, Epic Games, and Netflix to take notice. Any company processing billions in digital content payments faces the same interchange math Sony just acted on.

For institutional observers, Sony's move validates the thesis that stablecoins are becoming standard infrastructure for consumer payment ecosystems rather than crypto experiments. The US represents over 30% of Sony Group's external revenue - domestic stablecoin rails aren't a side project.

The 2026 timeline is aggressive but achievable. OCC approval typically runs 12-18 months. Sony has the balance sheet, the regulatory pathway exists, and Bastion's infrastructure is production-ready. The question isn't whether Sony launches - it's whether other major entertainment conglomerates are already drafting similar filings.

🏛️ FDIC Framework for GENIUS Act Implementation Coming This Month

The FDIC will propose its first stablecoin rules under the GENIUS Act before December ends, turning five months of policy into something banks can actually act on. Acting Chair Travis Hill confirmed the timeline in testimony this week. (See Simon's Market Readout for the broader context on what this signals for new bank charters and fintech innovation.)

Key Points:

• The FDIC will propose stablecoin application frameworks this month, with prudential requirements following in early 2026

• Separately, the FDIC is developing guidance on tokenized deposits. This is distinct from stablecoins and retaining full FDIC insurance

• The Federal Reserve confirmed it is building capital and liquidity rules for stablecoin issuers; Treasury closed its second consultation last month

• All agencies must finalize rules by July 2026, with the GENIUS Act taking effect by early 2027 at the latest

The Tokenized Take:

The FDIC just revealed it's building two different playbooks - one for stablecoins, one for tokenized deposits. Most coverage conflates them. They're not the same. And understanding the difference is worth billions.

The FDIC will propose its first GENIUS Act stablecoin application frameworks this month.

But buried in Travis Hill's testimony was something bigger: they're also developing separate guidance for tokenized deposits.

These are not the same thing. Understanding why matters.

Remember, the Federal Deposit Insurance Corporation insures bank deposits against loss. It does not insure non-banks (AKA, stablecoin issuers who aren’t banks).

Stablecoins under GENIUS:

Issuers can be banks (via subsidiaries), OR non-banks. The OCC regulates non-banks, while bank subsidiaries are regulated by their existing regulator (which may also include the OCC). Stablecoins are not FDIC-insured; instead, they rely on 1:1 reserves in Treasuries/cash. Definitionally, no yield to holders of the stablecoin from the treasuries.

The Fed's Michelle Bowman confirmed they're building capital and liquidity rules for stablecoin issuers. Treasury closed its second consultation last month. Expect these rules to close in 2026.

Will banks issue stablecoins via subsidiaries, or tokenized deposits or both?

Well, tokenized deposits require clarity of their own and this FDIC speech was fascinating on that front.

Tokenized deposits:

Can be issued only by banks with full FDIC insurance retained. Hill says, "A deposit is a deposit," and moving to blockchain doesn't change the legal nature, so they come with the same protections as your checking account

The GENIUS Act explicitly excludes tokenized deposits from its scope. That's intentional. But it creates ambiguity for banks that want to get into tokenized deposits.

So it's important to separate these into definitions.

●      Stablecoins: Cash-like, can be transferred to anyone with a compatible wallet, typically used for remittances, payouts, and access to long-tail FX markets. Instant, 24/7 and programmable.

●      Tokenized deposits: a deposit, only usable by customers of that bank. Links back to a real balance at a bank. It is global, 24/7, and programmable but closed loop (unless banks find ways to swap it via stablecoins or for other tokenized deposits)

The FDIC is giving clarity to banks. Saying they can use permissionless ledgers for their activities, and where FDIC protection (and rules) apply. Removing ambiguity is key for these giant organizations.

This is moving quickly.

By July 2026, all agencies must have final rules in place.

The pace of this change is staggering. These rules can often take 5 years or more to appear, and then end up subject to countless legal challenges and wrangling. We might see some of that as the proposed rules approach their final form.

Why does all of this matter?

It matters because a law is only as useful as the rules that enforce it.

The largest banks will want to see those rules on the books before they move in at real scale.

🏛️ South Korea's Stablecoin Bill Faces December 10 Deadline

South Korea's lawmakers have issued an ultimatum: financial regulators must deliver a draft stablecoin bill by December 10, or the National Assembly will write the law themselves.

The standoff pits the Bank of Korea against the Financial Services Commission (FSC) over a fundamental question - should banks control stablecoin issuance, or should fintechs have a seat at the table?

Key Points:

• The FSC is under pressure to deliver the Virtual Asset User Protection Act Phase 2 to the National Assembly by year-end, establishing licensing, reserve requirements, and redemption rights for stablecoin issuers

• The Bank of Korea demands that banks hold at least 51% ownership of any stablecoin issuer, arguing that stablecoins function like deposits and require prudential oversight

• Eight major banks - KB Kookmin, Shinhan, Woori, Nonghyup, Industrial Bank of Korea, Suhyup, Citi Korea, and SC First Bank - have already formed a consortium to launch a won-pegged stablecoin by early 2026

• Naver Financial (which agreed to acquire Dunam/Upbit – country’s largest crypto exchange operator last week) is launching its "Silk Pocket" stablecoin wallet in Busan this month, digitizing Dongbaek-jeon (Busan's 1.5 million-user regional currency)

• Korea halted its CBDC program in June 2025, pivoting to private-sector stablecoin issuance

• In parallel, the FSC has expanded its crypto Travel Rule reporting to transactions under 1 million won (~$700), closing a loophole used to bypass identity checks

• Democratic Party lawmaker Kang Joon-hyun confirmed the bill will be discussed at the January 2026 extraordinary session if regulators meet the deadline

The Tokenized Take:

Three months ago, we wrote that Korea halting its CBDC in favor of bank-issued stablecoins was "bigger than just Kakao Bank launching cross-border payments." The December deadline validates that assessment. Korea is now racing to codify the rules before the market outruns the regulators.

The bank vs. fintech debate mirrors tensions playing out globally. The BOK's 51% ownership requirement reflects a central bank protecting its monetary transmission mechanisms - stablecoins that function like deposits should be regulated like deposits. The FSC's openness to non-bank issuers reflects the reality that Korea's fintech giants (Naver and Kakao) already dominate consumer payments and have the distribution to drive adoption. Neither side is wrong; they're optimizing for different outcomes.

What makes Korea's approach distinctive is the consortium model. Rather than one bank issuing its own token (the JPMorgan playbook) or a fintech going solo (the Circle model), Korea is building shared infrastructure across eight competing institutions. The economics are compelling: shared compliance costs, pooled liquidity, and a unified won-stablecoin that avoids fragmentation. If executed well, this becomes the template for how traditional banking systems can collectively respond to stablecoin competition.

The timing pressure is structural. USD-pegged stablecoin trading in Korea hit 56.95 trillion won (~$40 billion) in Q1 2025 alone - capital flowing through rails banks don't control. The US passed the GENIUS Act in July. The EU's MiCA framework is operational. Japan launched its first regulated yen stablecoin in October. Korea's export-driven economy (Samsung, Hyundai, LG) cannot afford regulatory lag when competitors are settling cross-border trade on faster rails.

Naver's Busan launch this month is an early sign of the shift underway. The company isn't waiting for perfect regulation - it's shipping products and betting the framework will catch up. When a regional bank and a tech giant are collaborating on live infrastructure, the policy debate becomes secondary to market reality.

For institutional observers, Korea offers a preview of how mature economies navigate the CBDC vs stablecoin question. The answer, increasingly, is private issuance with public oversight. Banks provide balance sheet credibility and regulatory familiarity. Fintechs provide distribution and user experience. Regulators set reserve requirements and redemption guarantees.

The January extraordinary session will determine the final architecture. But if legislators don't get what they need by December 10, expect a messier legislative process that could delay actual implementation well into 2026. But the direction is clear. The won is about to go programmable - the question is who programs it.

💸 Zepz Launches Stablecoin-Linked Visa Cards Powered by Bridge

Zepz, the remittance group last valued at $5 billion, and behind WorldRemit and Sendwave, is launching stablecoin-linked Visa cards powered by Bridge. Sendwave Wallet customers will be able to spend their USD stablecoin balances at millions of merchants worldwide that accept Visa worldwide - with Bridge handling instant conversion to local currency at the point of sale.

Key Points:

• The Sendwave Wallet, launched in October 2025 on Solana using Circle's USDC infrastructure, already enables users in 100+ countries to send, receive and store digital dollars

• The new Visa card adds spend functionality: customers tap their card, Bridge converts stablecoins to local fiat in real-time, and merchants receive payment like any other transaction

• Zepz has signed an agreement with Stripe to expand Sendwave Wallet into the US, Canada and Australia - extending reach beyond its traditional Africa-to-diaspora corridors

• Zepz processes over $15 billion in annual remittance volume, and has served 11 million users across 150 countries historically, with average customers transacting four times per month

• Bridge's Visa card product launched in April 2025 across Latin America, and is now expanding through partners like Zepz

The Tokenized Take:

This is stablecoin rails going mainstream in the remittance corridor that matters most: Africa and its diaspora. Zepz isn't a crypto company experimenting with blockchain. It's a $5 billion fintech that moves $15 billion annually for ~11 million customers - most of whom are sending money home to families in sub-Saharan Africa, where remittances can represent 35% of a national economy.

The architecture is worth understanding. Sendwave Wallet holds customer funds in USDC on Solana - fast, cheap, and globally accessible. The new Visa card sits on top, powered by Bridge's infrastructure. Brazil and select Latin American markets come first in early 2026, leveraging Bridge's existing Visa infrastructure in the region. But the strategic prize is Africa, where Zepz's core customer base sits. When the card rolls out to markets like Nigeria and Kenya, a recipient in Lagos will be able to tap their card at a local merchant, with Bridge instantly converting their stablecoin balance to naira. The merchant gets paid in local currency. The customer never needs a local bank account. This is the "stablecoin sandwich": dollar stability on the backend, local currency experience on the frontend, blockchain settlement in between.

Bridge CEO Zach Abrams framed the value proposition directly: "Global fintechs like Zepz shouldn't have to spend years launching cards from scratch in every single country. With Bridge, Zepz can launch card services quickly and expand to new countries with just a few lines of code."

For the remittance industry, this is an inflection point. Traditional corridors require pre-funding in destination countries, correspondent banking relationships, and multi-day settlement windows. Stablecoin rails collapse that to near-instant, with liquidity held in USDC rather than locked across local banking partners. Zepz previously partnered with Circle to integrate USDC and EURC into its back-office treasury operations, reducing those pre-funding requirements. The Visa card extends the same economics to end customers.

Zepz isn't alone in this shift. Western Union has announced plans for stablecoin settlement processes in 2026. Remitly launched Remitly wallet, and partnered with Bridge to add stablecoin payout rails in September. The largest cross-border payments companies are converging on the same infrastructure model. And Bridge isn't the only player building this layer. Rain, which we covered in September, operates as a Visa Principal Member with direct issuing rights and lending products. Bridge is betting on developer simplicity and horizontal scale; Rain on vertical depth. Both validate that stablecoin-to-card infrastructure is becoming a strategic chokepoint.

The geographic expansion is deliberate. Zepz built its business on diaspora flows - Somalis in London sending to Mogadishu, Nigerians in Houston sending to Lagos. Adding the US, Canada, and Australia through Stripe brings the Sendwave Wallet to the largest diaspora populations and highest-value “send” markets, while the Visa card rollout starts in Latin America before expanding to African “receive” markets.

For enterprise observers, this is the proof point: when a large remittance company last valued at $5 billion with ~11 million customers puts stablecoins at the center of its product, the debate over whether this technology is ready for scale is over.

📰 Some More News:

🏦 Tokenization, Stablecoins & Finance

• Unlimit launches stablecoin clearing house (Read more here)

• Taiwan Authorities Say Island's First Regulated Stablecoin Will Debut Next Year (Read more here)

• Baanx brings crypto spending to everyday life for MetaMask, Ledger, and Exodus users (Read more here)

• Navro adds stablecoin payments via BVNK integration (Read more here)

• Georgia eyes onchain property rights and tokenization with Hedera partnership (Read more here)

• Binance names co-founder Yi He co-CEO alongside Richard Teng (Read more here)

• Vanguard Opens Platform to Crypto ETFs in Major Shift: Bloomberg (Read more here)

• Kalshi taps Solana to tokenize betting contracts: Report (Read more here)

🤑 Funding and M&A

• RedotPay forms pact with Ripple (Read more here)

💼 Government & Policy

• UK Formally Recognizes Crypto as Property with New Digital Assets Law (Read more here)

• MAS gives Ripple more leeway for bank settlements (Read more here)

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