- Japan‘s Sumitomo Mitsui Financial Group plans to issue a stablecoin in collaboration with Ava Labs and Fireblocks, aiming for a live launch in 2026.
- The stablecoin will enable corporations to transfer money globally 24/7 without Swift delays, similar to initiatives by JP Morgan and Citi.
- SMBC is pursuing multiple blockchain payment solutions, including involvement in Japan’s Progmat tokenization platform and Project Pax with other major Japanese banks.
Sumitomo Mitsui Financial Group, parent company of Japan’s second-largest bank SMBC, is developing a stablecoin in partnership with Ava Labs (creator of the Avalanche blockchain) and Fireblocks, according to a report from the Nikkei. The bank plans to conduct experiments with Japanese IT firm TIS in late 2025 or early 2026, with an official launch scheduled for the following year.
The primary goal of this stablecoin is to provide corporations with instant, around-the-clock international money transfers that bypass the Swift system. While Swift payments should theoretically be instantaneous, they frequently encounter delays due to different bank operating hours and the need for receiving banks to credit recipients. Stablecoins eliminate the need for intermediary banks that typically slow down traditional transfers.
Other major financial institutions have already implemented similar solutions. JP Morgan offers Kinexys Digital Payments (formerly JPM Coin), a blockchain-based banking system, while Citi has launched Citi Token Services. Both utilize permissioned blockchain networks, unlike Avalanche’s primarily permissionless structure. However, Avalanche does support permissioned chains as subnets, such as its Spruce testnet with institutional validators. SMBC has not yet clarified which approach it will adopt.
SMBC’s Broader Blockchain Strategy
SMBC is simultaneously involved in several other blockchain initiatives. The bank backs Progmat, a Japanese tokenization platform with stablecoin capabilities through Progmat Coin. SMBC is also collaborating with MUFG and Mizuho (Japan’s other major banks) on Project Pax, which tests “stablecoin sandwich” transactions where stablecoins replace correspondent banks while maintaining traditional payment interfaces.
According to undisclosed sources, SMBC joined Partior two years ago – a cross-border blockchain payment system co-founded by DBS, JP Morgan, and Temasek. While SMBC hasn’t officially confirmed this partnership, the report carries credibility as Deutsche Bank’s recent Partior investment confirmed earlier reporting about their involvement.
The Future of Cross-Border Payments
These multiple blockchain initiatives demonstrate SMBC’s comprehensive approach to modernizing international payments. By pursuing various technological solutions simultaneously, the bank appears to be hedging its bets on which blockchain payment system will ultimately prove most effective for global transactions.
The stablecoin project represents one facet of a broader industry trend toward blockchain-powered financial infrastructure that promises to make cross-border transactions faster, more reliable, and available at all hours without the limitations of traditional banking systems.
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