Japan’s Second Largest Bank SMBC to Launch Stablecoin

Sumitomo Mitsui Financial Group, which manages Japan’s second largest bank, SMBC, plans to launch a stablecoin in collaboration with Ava Labs and Fireblocks, according to Nikkei.

The financial institution will test the project in the second half of 2025, with the token release scheduled for 2026.

Ava Labs will create the blockchain infrastructure, while Fireblocks will develop the stablecoin management system.

SMBC has also engaged local IT company TIS for technical support during the tests.

This is not the bank’s first foray into blockchain and tokens. In 2022, SMBC established the Token Business Lab with HashPort, focusing on NFT service development. Later, they tested the issuance of soulbound tokens for identity verification.

In September 2024, SMBC announced plans to launch a pilot cross-border stablecoin project in collaboration with two other major Japanese banks, Mitsubishi UFJ Financial Group and Mizuho Financial Group.

In February 2025, journalists reported that Japan’s Financial Services Agency will revise cryptocurrency legislation, including the possibility of classifying digital assets as financial products “on par with securities.”