Japan's SMBC Plans Stablecoin Launch with Ava Labs and Fireblocks

Sumitomo Mitsui Financial Group (SMBC), Japan's second-largest bank, is planning to launch a stablecoin in collaboration with Ava Labs and Fireblocks, according to a Nikkei report on Tuesday. Ava Labs will establish the stablecoin's foundation using blockchain technology, while Fireblocks will develop a management system. SMBC plans to conduct experiments in the second half of 2025 with local IT firm TIS, potentially issuing the stablecoin in 2026. This move aims to streamline cross-border payments and reduce transaction costs. The total market cap of stablecoins currently stands at $234.6 billion, marking a 56% year-over-year increase.