Sumitomo Mitsui Financial Group (SMFG), the parent company of Japan’s second-largest bank, Sumitomo Mitsui Banking Corporation (SMBC), is preparing to launch its own stablecoin in collaboration with Avalanche and Fireblocks.
According to a Nikkei report published on April 1, 2025, the initiative is part of SMBC’s broader push into blockchain technology and digital assets.
SMBC’s Stablecoin Initiative
SMBC’s stablecoin project will be developed in partnership with Ava Labs, the developer of the Avalanche blockchain, alongside Fireblocks, a crypto infrastructure provider.
The bank is also teaming up with TIS, a Japan-based IT firm, to conduct stablecoin trials in late 2025 or early 2026. If successful, live issuance could begin later in the year.
Japan’s Banks Expanding Into Stablecoins
SMBC’s move follows its involvement in a 2024 pilot with two other Japanese banking giants—Mitsubishi UFJ Financial Group (MUFG) and Mizuho Financial Group. That project aimed to test cross-border stablecoin transfers using Progmat and Datachain.
The growing interest in stablecoins among Japanese banks aligns with a global trend where major financial institutions, including JPMorgan and Citi, are exploring blockchain-based payment solutions.
SMBC’s Blockchain Journey
SMBC has been involved in blockchain technology for several years:
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2019: The bank completed a blockchain proof of concept (PoC) for Marco Polo, a trade finance platform developed by R3.
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2020: SMBC partnered with Singapore-based Contour to digitize its trade finance services using blockchain.
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2024: The bank participated in a stablecoin transfer pilot with MUFG and Mizuho.
Now, with its stablecoin project, SMBC is taking a major step toward integrating blockchain into mainstream banking.
The Future of Stablecoins in Banking
Banks worldwide are increasingly turning to stablecoins for faster transactions, lower costs, and improved liquidity management. Unlike cryptocurrencies, stablecoins are pegged to fiat currencies, making them more appealing for regulatory compliance and institutional adoption.
With Japan’s financial sector embracing stablecoins, SMBC’s project could set a precedent for future blockchain-based financial innovations in the country.
For more updates on stablecoins and banking innovations, visit TheCoinInfo.
