Sumitomo Mitsui Financial Group (SMFG), the holding company of Japan’s second-largest bank, announced plans to launch its own stablecoin. This move is part of partnerships with Ava Labs and Fireblocks to enhance international payment systems.
Partnerships and Plans of SMFG
According to reports, SMFG is collaborating with Ava Labs, the creator of the Avalanche blockchain, and the digital asset custody and transfer platform Fireblocks. The initiative aims to provide immediate, 24/7 cross-border payments, reducing reliance on outdated infrastructure like SWIFT, which can be delayed due to differences in banking hours and intermediaries.
Stablecoin Testing and Launch
SMBC plans to collaborate with Japanese IT company TIS to perform pilot tests of the stablecoin project in the fourth quarter of 2025 or early in 2026. If trials are successful, live issuance should follow later in the year.
SMFG's History in Blockchain Projects
SMBC's involvement with blockchain technology began in February 2019, when its IT team completed a blockchain proof of concept for payment promises on the Marco Polo trade finance platform developed by R3. In July 2020, SMBC collaborated with Singapore-based Contour to digitize its trade finance offerings using blockchain technology.
The bank’s shift toward stablecoins is part of a wider trend in the financial industry as major banks like JPMorgan and Citi explore similar blockchain solutions for better and faster payment systems.
