Japan's Second-Largest Bank Embraces Blockchain
Sumitomo Mitsui Financial Group (SMBC), which operates Japan’s second-largest bank, is planning to launch a stablecoin in partnership with Ava Labs and Fireblocks, according to Nikkei. The project is set to begin experimental phases in late 2025 with the goal of a full launch in 2026.
Tech Roles and Vision
Ava Labs, the core team behind the Avalanche blockchain, will help build the stablecoin infrastructure. Fireblocks, known for crypto security, is expected to handle token management. SMBC is also partnering with local IT firm TIS to test the project, hoping to streamline cross-border payments by replacing the legacy SWIFT system.
Japan’s Early Stablecoin Regulations
Japan is ahead of the curve when it comes to regulating fiat-pegged stablecoins. In 2022, its parliament passed amendments recognizing these digital assets as “Electronic Payment Instruments” and limiting issuance to licensed banks, trust companies, and approved intermediaries.
Wider Implications
SMBC's move aligns with a broader trend, with more traditional financial institutions eyeing stablecoins. Last year, SMBC also explored Web3 through its Token Business Lab with HashPort, including trials for soulbound tokens. Meanwhile, in the U.S., President Trump has backed legislation to promote dollar-backed stablecoins, pushing the financial industry toward onchain innovation.
