Welcome to Enterprise OnChain

Author

James Smith
January 14, 2025

This is Enterprise onchain, keeping you updated on Blockchain and Enterprise developments.

Here’s what we’ve got for you today:

🌐 Sony Launches Layer 2 Blockchain – Sony’s new Layer 2 is live, aiming to revolutionize scalability and user experience.

🌴 Tether Relocates to El Salvador – A move for innovation or regulatory relief? Tether shifts its base to Bitcoin-friendly El Salvador.

💱 IMF Highlights Stablecoin Adoption in Kenya – Kenyan businesses widely use stablecoins for paying foreign suppliers, says an IMF report.

🚀 DTCC Drives 2025 Innovation Agenda – DTCC focuses on tokenization and resilience, with plans to transform global financial systems.

“Ethereum is: the world computer, an incredibly large & diverse onchain economy, and an incredibly large & diverse global community...all at once”

Sony Debuts Soneium: Advancing Ethereum Layer 2 for Entertainment

Sony Block Solutions Labs (SBSL) goes live with a layer-2 network atop Ethereum — as "a versatile general-purpose blockchain platform" built to support a diverse ecosystem of gaming, finance, and entertainment apps.

They have big plans - phase two, within two years, Sony wants to onboard products, such as Sony Bank, Sony Music, Sony Pictures, and so on. In three years, Sony intends to onboard other enterprises and all general dapps on the top of it.”

Sony's network is yet more evidence that traditional technology companies might again be keen on blockchain's ability to connect and commercialize the future of media. The chain aims to " bridge the gap between web2 and web3 audiences, especially for the creators, fans and community.”

Key Takeaways:

  1. Built on Optimism’s OP Stack (Also chosen by Celo, Coinbase, Kraken etc)

  2. Building layer 2 offers control while inheriting Ethereum’s security.

  3. Sony is onboarding their products, and it will be interesting to watch developments in the future.

  4. Many talks are happening with large L1s considering becoming L2. A deep dive is coming soon.

DTCC Sets Bold Vision for 2025

DTCC is spearheading major innovations in 2025, building on the success of last year’s T+1 settlement cycle transition. With a focus on digitization, blockchain, and AI, the organization drives tokenization in collateral and fund markets while preparing for the U.S. Treasury Clearing mandate.

These advancements aim to enhance market efficiency and unlock capital mobility. As Nadine Chakar, Head of DTCC Digital Assets, notes, “We’ve proven the technology’s merits—now it’s time to implement real-world applications through tokenization.”

Amid a dynamic landscape of regulatory change and rising risks, DTCC is doubling down on resilience and operational excellence.

By integrating automated processes, cross-margining, and advanced threat detection, they’re ensuring markets remain robust and adaptive. With global initiatives like UPI reporting rolling out, DTCC is working to modernize platforms and support seamless compliance. 2025 is shaping up to be a pivotal year for transforming financial ecosystems. Article here

Why is Tether Moving to El Salvador? 🤔

Tether, the issuer of the largest stablecoin by market cap, has announced a move to El Salvador. This comes when the firm is rated a "D" by Bluechip for lack of transparency and perceived risk in its operations. El Salvador, known for its crypto-friendly stance and adoption of Bitcoin as legal tender, is unlikely to scrutinize Tether’s operations as strictly as other jurisdictions might.

This raises several questions:

  1. Is this a strategic shift or a red flag?
    Moving to a jurisdiction with less regulatory oversight could provide operational flexibility, but it might also signal an avoidance of deeper scrutiny. Is Tether taking advantage of a crypto-friendly environment, or is this move about shielding itself from potential regulatory actions?

  2. What does this mean for stablecoin users?
    Trust in stablecoins is tied to transparency and perceived stability. If Tether’s move sparks doubt, could this erode confidence in the broader ecosystem?

  3. What happens if Tether implodes?
    The implications of a Tether collapse are enormous. Stablecoins underpin much of the crypto ecosystem, serving as a bridge between fiat and blockchain-based assets. Could decentralized stablecoin models or alternative stablecoins step in to mitigate the risk?

This move challenges us to think critically about the broader stability of the crypto market. If the largest stablecoin issuer is perceived as taking risky steps, what can the industry do to ensure resilience in the face of potential shocks?

Businesses use stablecoins to pay suppliers

An IMF report highlights a growing trend: Kenyan businesses use stablecoins to pay foreign suppliers, especially during dollar shortages or shilling (KES) depreciation.
Key insights:

🌳 Hedging Against Depreciation: Stablecoins are becoming a preferred option for storing value and hedging against the falling value of the Kenyan shilling.

💲 Private Sector Innovation: The adoption of stablecoins is more widespread than expected (IMF reported), with companies leveraging them for cross-border payments and operational stability.

🌏 A Shift in Finance: Emerging-market businesses embrace unconventional financial tools to navigate currency volatility and global trade demands.

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