Sumitomo Mitsui Financial Group (SMFG), the holding company of Japan’s second-largest bank, Sumitomo Mitsui Banking Corporation (SMBC), is set to introduce its stablecoin.
As per the reports, the effort includes partnerships with Ava Labs, the creator of the Avalanche blockchain, and Fireblocks, a platform for digital asset custody and transfer.
The initiative hopes to enable immediate, 24/7 cross-border payments that could cut dependence on legacy infrastructure such as SWIFT, whose operations can be delayed by the differences in banking hours and intermediaries.
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.
The step is a part of a broader scheme by SMBC to enhance cross-border payment systems through blockchain technology. In 2024, SMBC, Mitsubishi UFJ Financial Group (MUFG), and Mizuho Financial Group participated in “Project Pax.”
SMBC’s participation 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.
SMBC was part of a group that included Commerzbank, BNP Paribas, Anglo-Gulf Trade Bank, Standard Chartered Bank, and Danske Bank. Subsequently, 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, with big banks like JPMorgan and Citi exploring similar blockchain solutions for better and faster payment systems.
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