SMBC, one of Japan’s largest financial institutions, is preparing to make a strong entry into the stablecoin space. The bank has announced its partnership with Ava Labs, the developer behind the Avalanche blockchain, and crypto security firm Fireblocks to launch its own stablecoin project. Ava Labs will provide the blockchain infrastructure, while Fireblocks will handle the token management system.
SMBC is expected to begin the testing phase in the second half of 2025, in collaboration with the IT company TIS, with the stablecoin planned for release in 2026.
The bank aims to increase efficiency and reduce costs in cross-border payments with this move. Stablecoin solutions are considered to be faster and more economical compared to the traditional SWIFT system.
SMBC has previously made significant moves in the Web3 and NFT space. In 2022, the bank launched Token Business Lab to offer NFT services and tested the Soulbound Token technology for identity verification.
With Japan now allowing only licensed institutions to issue stablecoins, major banks are taking an active role in this space. Meanwhile, President Trump’s steps toward stablecoin regulation in the US are also encouraging more banks to enter the market.
