Sumitomo Mitsui Financial Group Plans to Launch Its Own Stablecoin

The stablecoin project, according to a report published on April 1, 2025 by Nikkei, will be a collaboration between the banking giant and crypto projects Avalanche (AVAX) and Fireblocks.

As the parent company of Japan’s second-largest bank, Sumitomo Mitsui Banking Corporation, plans to launch its own stablecoin.

The project will see the banking giant join forces with crypto projects Avalanche (AVAX) and Fireblocks for the new stablecoin, local outlet Nikkei reports.

The publication adds that the project will also involve Ava Labs, the developer team behind the Avalanche blockchain.

SMBC’s reported stablecoin venture follows a prior move in 2024 that saw the financial services and banking firm team up with two other Japanese institutions – Mitsubishi UFJ Financial Group and Mizuho Financial Group. The partners were said to be eying a pilot for a cross-border stablecoin transfer venture, set to involve Progmat and Datachain.

In the latest report, Nikkei says SMBC will also join forces with Japan-based information technology firm TIS. The partnership will aim to conduct trials for the new stablecoin project in the fourth quarter of 2025 or early 2026. If successful, live issuance will follow later in the year.

Like other banks turning to stablecoins for improved functionality and instant money transfers, SMBC is no stranger to the blockchain space.

In February 2019, the bank’s tech team completed a blockchain proof of concept for payment commitments on Marco Polo trade finance, a platform developed by R3. SMBC was part of a consortium that also included Commerzbank, BNP Paribas, Anglo-Gulf Trade Bank, Standard Chartered Bank, and Danske Bank.

Following the R3 Marco Polo trade initiative, SMBC furthered its footprint in the blockchain ecosystem with another deal. It sought to digitize its trade finance offering with a blockchain touch, this time joining hands with Singapore-based Contour in July 2020.

These efforts have now evolved into stablecoin development, an area that is drawing interest across the financial services industry, including from JPMorgan and Citi, which have made major inroads using permissioned blockchains.