Japan’s second-largest bank, Sumitomo Mitsui Financial Group (SMBC), has announced plans to issue its own stablecoin.
According to the information, SMBC is collaborating with Ava Labs and Fireblocks to develop the stablecoin. Ava Labs, the team behind the Avalanche blockchain, will provide the infrastructure, while Fireblocks will create the token management system.
Testing and Launch Timeline
SMBC plans to begin testing the stablecoin in the second half of 2025, with a potential launch set for early 2026. This move marks a significant step forward for Japan, as the country has been proactive in regulating stablecoins.
Regulatory Landscape in Japan
Japan’s government took early action to regulate stablecoins, amending the “Payment Services Act” in June 2022 to recognize stablecoins as “Electronic Payment Instruments.” Under these amendments, only licensed banks, service providers, and trust companies are permitted to issue stablecoins, ensuring a secure and regulated environment for their use.
U.S. Stablecoin Developments and Potential Impact
While Japan moves forward with stablecoin innovations, U.S. President Donald Trump has also highlighted the importance of developing dollar-backed stablecoins. He has urged lawmakers to create a regulatory framework to support the growth of these assets. With a stablecoin law expected to be approved in the U.S. in the next couple of months, more traditional financial institutions are anticipated to join the stablecoin sector. This global shift toward stablecoin adoption could further influence the industry in both Japan and the United States.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/japans-smbc-set-to-launch-stablecoin-with-ava-labs-and/