Sumitomo Mitsui Financial Group, which operates Japan's second-largest bank SMBC, is planning to launch a stablecoin in collaboration with Ava Labs and Fireblocks, Nikkei reported Tuesday.
Ava Labs, the team behind Avalanche, intends to establish the "basis" of the stablecoin using blockchain technology, while crypto security firm Fireblocks would develop a management system for the tokens, the report said.
The banking giant plans to work with local IT firm TIS in conducting experiments for the project in the second half of 2025 and potentially issue the stablecoin next year.
Stablecoins potentially give banks the opportunity to streamline cross-border payments and reduce transaction costs, whereas the existing SWIFT system often involves intermediaries that lead to higher fees and longer processing times.
The Block has reached out to SMBC and Ava Labs for further comment and details.
SMBC has previously dabbled in Web3 by establishing Token Business Lab in 2022 with local firm HashPort to provide blockchain services focused on NFTs. Later in the year, the two companies announced a trial issuance for soulbound tokens, which are essentially non-transferable NFTs, that would be used for identity verification.
Last year, SMBC said it was planning to launch a pilot cross-border stablecoin project with two other major Japanese banking institutions, Mitsubishi UFJ Financial Group and the Mizuho Financial Group.
Japan has taken early steps to regulate stablecoins. In June 2022, the Japanese parliament passed amendments to the Payment Services Act that recognized fiat-pegged stablecoins as "Electronic Payment Instruments." The amendments also stipulated that only licensed banks, service providers and trust companies would be allowed to issue such stablecoins.
Meanwhile in the U.S., pro-crypto President Donald Trump has highlighted the importance of promoting dollar-backed stablecoins, urging lawmakers to establish the necessary regulatory framework to do so.
With the upcoming legislation that will bring additional clarity to stablecoins in the U.S., more traditional banking players will likely join the stablecoin business. In February, Bank of America CEO Brian Moynihan said the bank would "go into that business" if made legal.
According to DefiLlama data, the total market cap of stablecoins stood at $234.6 billion at press time, marking a 56% year-over-year increase.
Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.
© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
