Japanese Banking Giants SMBC plans stablecoin Launch With Ava Lab and Fireblocks.
Ava Labs, the developer behind the Avalanche blockchain, is expected to build the technological foundation for the stablecoin

Sumitomo Mitsui Financial Group (SMFG), the parent company of Japan’s second-largest bank SMBC, is preparing to launch a stablecoin in partnership with blockchain firm Ava Labs and crypto infrastructure provider Fireblocks, according to a report by Nikkei on Tuesday.
Ava Labs, the developer behind the Avalanche blockchain, is expected to build the technological foundation for the stablecoin, while Fireblocks will handle token management and security systems. The project is currently in its planning phase, with trials slated to begin in the second half of 2025.
Additionally,the bank 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 the bank 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 to Launch Stablecoin
The stablecoin initiative aims to improve cross-border payments by reducing reliance on intermediaries, such as those used in the SWIFT network, which often lead to higher fees and delays.
A stablecoin could offer banks a faster and more cost-effective alternative for international transactions.In 2022, the country’s parliament amended the Payment Services Act to define fiat-backed stablecoins as “Electronic Payment Instruments,” limiting issuance to licensed banks, trust companies, and registered service providers.
Internationally, momentum is also building. In the U.S., President Donald Trump has called for regulatory clarity on dollar-backed stablecoins, a move that could open the door for more traditional financial institutions.Bank of America CEO Brian Moynihan recently stated the bank would enter the stablecoin market if allowed by law.
According to DefiLlama, the total market cap of stablecoins currently stands at $234.6 billion, reflecting a 56% increase year-over-year. Moreover, Japan is preparing a major regulatory shift by planning to recognize cryptocurrencies as financial products under the Financial Instruments and Exchange Act.
The Financial Services Agency (FSA) aims to submit a bill by 2026, which, if passed, would bring digital assets under the same rules as traditional securities, including laws against insider trading.