Core Insights - Sony Bank has established BlockBloom Inc., a wholly owned subsidiary focused on developing Web3 services, including digital assets, NFTs, and blockchain infrastructure [1][2] - The subsidiary will operate under Japan's regulated framework for digital assets, allowing the bank to safely develop blockchain technology without impacting core banking activities [2][4] - BlockBloom received $2 million in initial capital and is expected to begin operations in autumn 2025, with plans to provide digital wallets for crypto and NFTs and facilitate yen-to-digital-asset conversions [3] Company Developments - The creation of BlockBloom Inc. is part of Sony Bank's strategy to manage digital asset projects while keeping compliance and operational risks separate from traditional banking [2][4] - Sony Bank anticipates that BlockBloom will have minimal impact on earnings for the fiscal year ending March 31, 2026 [4] - The subsidiary may develop services such as NFT custody, tokenized financial instruments, and blockchain settlement networks, potentially collaborating with fintech startups [6] Industry Context - Japan's digital asset market is experiencing steady growth, with NFT trading volumes reaching billions of yen and increasing retail adoption of cryptocurrencies [5] - Financial institutions in Japan are exploring blockchain for various applications, including tokenized securities and cross-border payments [5] - Recent regulatory updates allow banks to offer tokenized securities, NFT services, and blockchain payments within a regulated framework [4]