Sumitomo Mitsui Financial Group, with a stable coin project on Avalanche-Blockchain, sets new standards for cross-border payments

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Sumitomo Mitsui Financial Group terminates StableCoin project on Avalanche-Blockchain

The Sumitomo Mitsui Financial Group (SMFG), the parent company of the second largest bank of Japan, has announced the introduction of a new stable coin on the Avalanche blockchain. This project is being created in cooperation with AVA Labs, a company from the USA, and Fireblocks, a provider of blockchain infrastructure.

According to reports Japanese media, the stable coin will be covered by fiat currencies and aims to increase efficiency in international payments by bypassing traditional intermediaries such as Swift.

Start 2025 - full of rollout from 2026

The first pilot tests are planned for the second half of 2025. At the beginning, the stable coin is used exclusively for internal payments within the SMFG group. The commercial use is planned for 2026.

  • AVA Labs will take over the blockchain development.
  • Fireblocks is responsible for token emissions, security and infrastructure.
  • The Japanese IT company TIS supports the technical structure in testing.

goal is to develop a stable and legally secured stable coin that makes digital payment transactions between companies faster, cheaper and more transparent.

Japan on the way to digital finance

The SMFG is the umbrella company of the Sumitomo Mitsui Banking Corporation (SMBC), which manages around $ 1.7 trillion in assets. The company has been active in the blockchain area for years:

  • 2022 SMBC founded the TOKEN Business Lab together with Hashport to research applications for NFTs, including non-transferable ID tokens.
  • 2023 SMBC took part in a Stabilcoin pilot project with Japan's other large banks Mibuho and Mitsubishi UFJ for international payment processing.

Japan's legislation is considered one of the most advanced worldwide: Fiat-based stable coins were already recognized as "electronic payment instruments" in 2022. Only regulated banks and licensed financial service providers can emit such tokens.

Currently Japanese regulatory authorities are discussing new reforms to prevent insider trade in digital assets and to integrate cryptocurrencies more into securities law.

Stablecoins: Interest from Tradfi is growing worldwide

The interest of classic financial institutions (Tradfi) in stable coins is also rapidly growing globally. In the United States, President Donald Trump recently announced that it wants to create regulatory clarity for dollar stalls.

The Bank of America has already expressed interest in issuing its own stable coins - but subject to regulatory permits. The market data show that the StableCoin market has grown by 56 % in the past twelve months and has now reached a market capitalization of $ 234.6 billion.

With the Avalanche project, the SMBC group positions itself as a pioneer in the institutional stable coin market. If the project is successful, Japan could play a leading role in combining traditional banking and blockchain technology and pave the way for a new generation of digital financial infrastructure.