Sumitomo Mitsui Banking Corporation Group (SMBC), a Japanese bank, said it is planning to test the use of Soulbound tokens (SBT) for identity verification in a joint venture with HashPort Group, a public utility that permits the movement of different tokens across various networks.
SMBC group said in a news release that it started discussing the idea of creating a joint business in collaboration with HashPort Group which is aimed at providing a safe and secure Web3 ecosystem in July.
A Soulbound token is a Non-fungible Token (NFT) that can be publicly verified and is not transferable and stands in for a person’s qualifications, connections, and commitments.
As per the fundamental agreement between SMBC and HashPort, SMBC Group will begin the first phase of testing by issuing SBT on a trial basis while receiving technical assistance from the HashPort group. The trial period will last through the end of March 2023.
The second phase of testing will proceed based on the results gotten from the first phase. The second phase will involve scenario testing in which SBT tokens will be utilized as evidence of behavior or career. In this phase, testing will be done to create case studies of SBT usage with the assistance of businesses considering creating and marketing fan communities utilizing tokens.
It was also revealed in the news that SMBC and HashPort have interests in growing crypto businesses that are related to NFTs and in creating infrastructures for the Web3 ecosystem.
Partnerships in the Web3 Ecosystem
The present bear market has caused a funding crisis in the cryptocurrency market, but there are still businesses and stakeholders ready to work together to promote and advance the blockchain sector.
For instance, Bakkt Holdings signed an agreement in November to buy Apex Crypto. The acquisition, according to the news release from Insidecrypto, is anticipated to increase the cryptocurrency goods that Bakkt offers and also widen its clientele to include Fintech firms, trading platforms, and neo-banks.
According to the agreement, Bakkt will pay $200 million for Apex Crypto. The agreement states that Bakkt will pay a $55 million down payment to finalize the transaction and an additional $45 million in Bakkt stock if financial goals are ultimately met in the fourth quarter of 2022.
In related news, Gate.io has pledged $100 million to boost the crypto market and restore the faith of investors in exchanges in the face of the ongoing market challenges
