According to a report by Nikkei, SMFG, Japan’s second-largest bank, has partnered with Ava Labs and Fireblocks to develop a new stablecoin aimed at making cross-border payments faster and cheaper.
Collaboration of SMFG, Ava Labs, and Fireblocks
Ava Labs, developers of the Avalanche blockchain, will lay the foundation for the blockchain infrastructure, while Fireblocks will build the token management system. The pilot project is expected to start with local IT firm TIS in the second half of 2025, with a potential market release in 2026.
Technical Aspects of the Stablecoin Project
Stablecoins offer banks a way to move money internationally without the many intermediaries involved in the SWIFT system, which leads to high fees and slow processing times. By implementing stablecoins, banks can streamline processes and save businesses and consumers both time and money.
Rising Demand for Stablecoins
Aptos's network serves as an example of the rapid rise in demand for stable assets, reaching a new market cap record of $1.05 billion. This highlights the growing popularity and liquidity of stablecoins across ecosystems.
SMFG’s project with Ava Labs and Fireblocks represents a significant move towards integrating blockchain technologies in the financial sector, highlighting potential improvements in financial infrastructure and reduction in operational costs on global markets.
