“`html
Sumitomo Mitsui Financial Group (SMFG), the parent company of Japan’s second-largest bank, Sumitomo Mitsui Banking Corporation, has announced plans to launch its own stablecoin. This initiative reflects a growing trend among major financial institutions embracing blockchain technology and digital currencies to enhance financial operations.
SMBC Partners with Avalanche and Fireblocks
The stablecoin project will be a collaborative effort between SMFG and prominent crypto projects, including Avalanche and Fireblocks. According to a report published in April 2025, SMBC will work closely with Ava Labs, the development team behind the Avalanche blockchain, to bring this initiative to life. This partnership aims to leverage Avalanche’s blockchain infrastructure for the stablecoin’s development and deployment.
Building on Previous Blockchain Initiatives
SMBC’s foray into stablecoin development follows its previous efforts in the blockchain space. In 2024, SMFG joined forces with Mitsubishi UFJ Financial Group and Mizuho Financial Group to explore a cross-border stablecoin transfer pilot. This pilot involved technologies from Progmat and Datachain, signaling the bank’s ongoing interest in digital asset innovation.
Planned Trials and Launch Timeline
In its latest venture, SMBC has partnered with Japan-based IT firm TIS to conduct trials for the stablecoin project. These trials are expected to take place in the fourth quarter of 2025 or early 2026. If the trials prove successful, the bank plans to roll out live stablecoin issuance later in 2026. This timeline aligns with SMBC’s strategy to integrate blockchain technology into its financial services offerings.
SMBC’s Blockchain Journey
SMBC has been actively exploring blockchain solutions for several years. In February 2019, the bank completed a blockchain proof of concept for payment commitments on Marco Polo, a trade finance platform developed by R3. This initiative involved a consortium of global banks, including Commerzbank, BNP Paribas, Anglo-Gulf Trade Bank, Standard Chartered Bank, and Danske Bank.
Building on this momentum, SMBC further expanded its blockchain efforts in July 2020 by partnering with Singapore-based Contour to digitize its trade finance operations. These early experiments set the foundation for the bank’s current stablecoin development plans.
Stablecoins Gaining Traction in Banking
The move toward stablecoin issuance is part of a broader trend among financial institutions. Banks like JPMorgan and Citi have also made significant progress in leveraging permissioned blockchains and stablecoins for more efficient and secure financial transactions. By adopting stablecoins, banks aim to improve functionality, enable instant money transfers, and reduce reliance on traditional payment systems.
As blockchain technology continues to evolve, initiatives like SMBC’s stablecoin project highlight the growing role of digital assets in the global financial ecosystem. This development not only underscores the potential of stablecoins but also signals the increasing integration of blockchain in traditional banking operations.
“`