Bank of Japan SMBC Prepares to Launch Stablecoin on Avalanche Platform
Date: 2025-04-02 Author: Oliver Abernathy Categories: BUSINESS
According to a report published by Nikkei on April 1, 2025, the project will be a collaboration between SMBC and Ava Labs, the developers of the Avalanche blockchain. This move continues the bank’s efforts to integrate blockchain technology that began in 2024.
Previously, Sumitomo Mitsui Financial Group collaborated with Mitsubishi UFJ Financial Group and Mizuho Financial Group on a pilot project aimed at cross-border transfers of stablecoins. The project involved platforms such as Progmat and Datachain.
According to the latest report by Nikkei, SMBC is teaming up with Japanese IT company TIS to conduct trials of the new stablecoin. The testing is planned for Q4 2025 or early 2026. If successful, the actual issuance of the stablecoin is expected later in 2026.
SMBC already has experience with blockchain technologies. In February 2019, the bank’s technical team successfully completed a proof of concept for a trade finance commitment system on the Marco Polo platform developed by R3. This consortium also included banks such as Commerzbank, BNP Paribas, Anglo-Gulf Trade Bank, Standard Chartered Bank and Danske Bank.
Continuing to develop the blockchain direction, in July 2020, SMBC began collaborating with Singapore-based Contour, aiming to digitize trade finance processes using distributed technologies.
Now, these efforts have evolved into the creation of a stablecoin, which is in line with the growing interest in this technology in the financial industry. JPMorgan and Citi have already made significant progress in this direction using permissioned blockchains.
