Sumitomo Mitsui Financial Group, the parent entity of Japan’s second-largest bank, Sumitomo Mitsui Banking Corporation, is set to unveil its own stablecoin.
According to a report from early 2025, this stablecoin initiative will involve a partnership between the banking giant and crypto entities Avalanche (AVAX) and Fireblocks.
Specifically, the report notes that SMBC is collaborating with Ava Labs, the development team responsible for the Avalanche blockchain.
This forthcoming stablecoin initiative follows a previous endeavor in 2024 involving Sumitomo Mitsui Financial Group and two other prominent Japanese financial institutions, Mitsubishi UFJ Financial Group and Mizuho Financial Group. These partners were reportedly exploring a pilot program for cross-border stablecoin transfers, which would integrate technologies from Progmat and Datachain.
The latest update indicates that SMBC will partner with the Japan-based IT firm TIS to conduct trials for the new stablecoin, anticipated in late 2025 or early 2026. Should the trials prove successful, the live issuance could follow later that year.
Like many banks exploring the advantages of stablecoins for enhanced functionality and rapid money transfers, SMBC is not unfamiliar with the blockchain domain.
In February 2019, the bank’s technology team accomplished a blockchain proof of concept for payment commitments on the Marco Polo trade finance platform established by R3. SMBC was part of a consortium that included Commerzbank, BNP Paribas, Anglo-Gulf Trade Bank, Standard Chartered Bank, and Danske Bank.
Building on the R3 Marco Polo trade project, SMBC progressed further into the blockchain space by partnering with Singapore-based Contour in July 2020 to digitize its trade finance offerings.
These initiatives have since evolved towards stablecoin development, which is garnering growing attention within the financial services sector. This includes major players like JPMorgan and Citi, who are making notable advancements using permissioned blockchains.