Evolving of Crypto and Enterprise Adoption in Japan | KBW2023

um good afternoon everyone uh today I think we are very excited and fortunate to have this wonderful panelist so personally I was uh in Japan on June for a month if you guys are aware Japan is I would say one of the most Progressive country in pushing the web 3 for example the Prime Minister kishida uh was at the crypto conference and then basically saying youngster please build something with the blockchain build something with the nft our government will be full support so that's why I think we have today's panel so for you to understand um what the Enterprise largest Enterprise in Japan is thinking about uh web 3 how they approach web 3 what how the Japanese Regulators uh make the environment more friendly for these people to actually act on it so let's start with the quick intro uh what with you responsibly at the current position so let's start with the Coan hi hello everyone I'm Co from Japan SBI nft CEO sorry I talk japanes only sorry Hi this me uh I'm H I'm currently leading the strategy marketing Alliance for ntid digital NTI digital is the new Sur of the entity uh uh basically will focus on the web stre uh for the entire uh entity group yeah thank you for inviting me uh hello uh this is kayaki uh I'm from Sony Bank uh it's under the Sony uh Global Group and uh I'm studying a study about uh new webx web three business and collaborating with Sony group and I'm head of DX business planning department nice to meet youbi SBI Financial conomy Financial grou [Music] commercial those who have a large distribution channelb they're one of the oldest uh the the congrates in we 3 Market maker yes so let's warm up a little bit uh may very briefly so uh what what part of the web 3 makes you excited personally also as a corporate level maybe we can group Pro manag web so um I been actually before NTT I've been working uh at Accentra as you know uh know that it's one of the biggest uh uh you know uh consulting firm so I spent the last like 20 years um working on the like emerging Tech so basically my responsibility to is to incorporate emerging Tech into the business so I used to be a AI guy to be honest I've been working for you know uh I started working around AI starting from like 18 years ago but the reason right now um I I shifted to the web 3 is because um first of all I think that that the technology is so immature so basically you can see that um Tech blockchain and web stre have very short history and not right now is there no winner uh used to be us but not anymore um and the technology is so many potential that uh people know right right now is building a lot of things and the the scope is very broad so that's why personally I very interest in the in the in this this area this field so as for NTT basically um as NT we think that we Street going to be the next pillar for uh our next decade growth um I think maybe it's same for every teleco over the world telecommunication company basically it's like it's it's a it's dying industry if if if they're only operating inside the the country so in Japan we have like declining population so you know that we can't increase aru the average price per user anymore but we need to keep investing you know into like 5G 6G 7g no maybe maybe 100g you know in the in the future but we can raise the price and by the way the population is declining so basically only future for us is dying whether it's will happen in this 10 years or 20 years we don't know but it's dying for sure so that's why uh as as n we need to explore the new gross P gross opportunity um I think so we think the web stre going to be definitely that one not because of this is a layer uh you know on top of the internet also because it's it's a global by default great maybe I can comment put the a little bit comments since uh the time I pushing we have a lot to cover so if I put a little comments so Sony for example the Sony Network uh the one subsidary they invested in in Leo one the projects in June and for example Sony interactive entertainment they they filed an nft patent recently and also Sony bank here they they uh launched the tokenized money trust with uh Smo trust and they also working with the MIT uh mitan digital asset team to launch the St offering platform so maybe my question to you is a little different here so my question is Sony has engineering Sony has an entertainment Sony has a financial group so how you guys as a firm level do you guys approach uh the nft business okay in entertainment can you explain a little bit about your nft initiative because you are involved in the nft side yeah and we are involved in nft side and we are delivering some nft projects and utilizing or collaborating with some artist of Sony and also with utilizing Sony technology for example uh the nft combined with the information of the baseball uh baseball itself rotation speed and the speed and we combine them and then we deliver this nft to the customer so that can be the memory for the uh F entertainment to people so that's the one solution which we are doing great uh from now on we're going to touch upon Japan's regulation and nft side and D5 that's our goal for 17 minutes so let's let me move on to uh let's move on to regulation first so my question is maybe to hosan this time so NTT recently announced to invest 4 billion US dollar in web 3 for next five years or several years and entity digital is basically web three subser of NTI so my question to you is what Japan's policy changes recently in web 3 it could be white paper it could be tax reduction and many things what kind of a maze entity really excited to do a lot of different business if you can explain a little bit okay I think yeah so there are a lot of change there a lot of change in Japan regulation and just as maybe you're some of you are familiar that ta the taxing tax so basically used to be if you issue issue the token then uh regardless whether you sell it or not so they will tax tax it based on the the the value the market value at the end of the fiscal year which mean that uh uh without cash in know coming coming in that you you you need to pay tax so that's a become the very uh one of the biggest hardle for the company who issue token uh we deregulate that as a as a country so last year but still is only for the first party issuing tokens not cerer so right now if I acquire some some token from azus still need to be taxed so which is another you know the remaining hardle for the a lot of the Enterprise um but we're we're working on that try to also deregulate that so just got about deregulation but I think that that that portion is more like Japan far behind uh the the you know compared with the other Market but there the also the other aspect like a stable coin stable coin security token I think Japan had the one one of the first you know stable coin bill I think um you know compared with the other countries so we launched that um uh like three years a three months ago four four months ago I forgot the exact date but um uh we can of have the very leading uh role for the stable coin in security token issuing which will provide very good guard rail for the Enterprise so the Enterprise can feel safe okay if I follow the throw follow the regulation I'm fine with there no no gray you know areas I I can can just go ahead and do that so I think that's very cheering you know the fact for the lot of Enterprise but to be honest the for NT it doesn't matter because we are the one who want to you know change the we want to to go to the regular rate from the our side because government waiting for us waiting for the Enterprise to come out with the real use case and tell them what kind of dation you need so we think we should should not just wait for the D regulation but we're the one who build the use case and then talk to the government to ask them to do to do so okay so I think [Music] n [Music] prod okay [Music] TR uh to moving on to uh maybe defi so we can main near the question will be direct to yuk Kang um so as as I mentioned uh Sony Bank uh work with the securitize which is us-based uh STL platform which is a leading player uh which is actually funded by Mitsubishi a few years ago as I remember uh that that the Sony Bank partner with the security tize to tokenize the money trust so and then uh they work with the MIT distal asset team to launch the s platform so we can dive into first is um what's your kind of U business strategy or business plan behind these two amazing initiatives okay so let me speak in Japanese okay uh [Music] for [Music] for [Music] m to entertainment security Bond [Music] hamiltonan enti so uh you guys uh announced to 4 billion investment which is a huge number and then grabbed a lot of attention from all the players uh in web 3 so what's your plan with this 4 billion announcement more maybe you can say specific or you can say more strategy Etc okay so that's very tough question because you know yeah the 4 billion the number have been too famous yes so by the way that's the same day uh as uh the FDX actually the morning we made the announcement at the at theend of the FDX come out what are they but uh um yes we uh building we the the things we're build so first of all or uh goal is not um you know the ntity so basically we not targeting the small portion of the investor or Speculator we or go is or Target is more like Mass adoption like Mass customer so believe that right now it's only maybe less than five in Japan right so less than 5% of the user have the the like metamask uh and uh the people who invest in the crypto and I think less than less than 20% something like uh 10 to 15 so um if you look at the word also it's very limited people right now it's enjoying the benefit of the web series so that's why we want to try to expand the boundary so because this is a good technology so we try to bridge the gap so right now no matter the wallet or the like solidity or the you know any type of or even like Market Place open c a lot of the tool is far from the user friendly to be honest if I can't I can't just ask my mom to use that right so that's the Gap we try to build so uh we start from the wallets because we believe that the wallet going to be the Gateway for for the users to come to web Street world uh if the gateaway is broken right it's it's it's difficult to use you can't bring more people to hear so that's why we start working with wallet but not limited to that uh based on the announce announcement we made you can see that we're also interest in the exchange and also token insurance and of course the most important things is is the security so um the company like NDT we can't just run something and say okay this a self custom and out of out your own risk um no it's not going to happen although we were serve our customer uh as self- custody wet in the first phase but still we we will try our best to to make sure that's no scam like um no uh like hacking that kind of so we will invest a lot in the security understood yeah so my next question this is great uh because I think he mentioned about wallet I think uh this session is about Enterprise I think uh I talked a lot about take up in South Korea I love I talked to a lot of congris in Japan one words that everyone says is a wallet because if you do custodial if you do un non custo there's always risk in both side and then whether you make the customers to complain themsel if they lose the key or you you have to deal with that so wallet is a key that's why our our VC we also focusing on wallet investment but let's go to kayaan to kosan maybe kosan first uh because kosan I think SBI among three I think SBI is the most active for five years on every single business on web 3 so your NF SBI nft business there I know how you think about the wallet currently if you have a wallet what's the wallet like is custo non custodial I and then I know that you work with a lot of other partners about this wallet and related business so I want to hear about the the approach to wallet your business or SBI same because they are dealing with the financial service how you approach the wallet so let's start with the co SB [Music] Serv group n ad web user experience the time is up so we can wrap up with h one one last question uh you can pick one of two uh since we don't have much time so two question I'll draw out to you one is what are you focusing on now that's you can briefly each you can mention actually take both both question and the other one is maybe there is an audience there might be operation or conglomerates or banks that who might be interested in talking with you so what kind of people that what kind of company do you want to meet during this uh KBW so [Music] full so uh as I mentioned so basically our ambition as entity is not domestic Market it's more like Global Market so we already started talking to Partners in the southeast Asia and uh also I believe that that including the Korea and um Taiwan also could be the our potential Market definitely interested in talking to the prayer there especially for those uh late comers like especially the web2 type of the company who interested in enter this place so one of the how should I say uh the as uh the how feature of the entities we're also latecomer there are tons of the existing company already been running the business for many years but a lot of the tool a lot of the solution is not there yet right so there's still very huge gap we're coming to fill the Gap so if there's anybody who is not satisfied with your existing wallet or infrastructure or anything just come to us you got we going to be the first penguin and we work with you and customize that and try to build the the good use case especially the cross crossb use case Japan Korean and Southeast Asia that's something we're interested [Music] awesome for we are the the global at ear stage web 3 VC we are based in us and then one angle that I want to share here is we'll be the we working with a lot of Enterprises Corporation and and then institutions in in especially in Asia so if you want Explore More on web 3 through the Venture Capital please talk to me so the Kayan from Sony bank and then hosan from NT digital and then Kang from SBI nft thank you thank