The parent company of Sumitomo Mitsui Banking Corporation (SMBC) has signed a memorandum with IT companies TIS, Ava Labs, and Fireblocks to create a framework for launching stablecoins and exploring potential use cases. The pilot project is expected to commence in the second half of 2025.
This is reported by Business • Media
According to information provided by Sumitomo Mitsui Financial Group, the partners plan to develop a mechanism for the issuance and circulation of stablecoins, focusing on technical and regulatory aspects in both Japanese and international markets.
Use of Stablecoins in Financial Transactions
The memorandum states that the initiative also includes exploring potential scenarios for the use of stablecoins, particularly as a means of payment for transactions involving tokenized real-world assets (RWA), such as government and corporate bonds, as well as real estate.
“Additionally, the initiative will explore potential use cases that leverage the defining features of stablecoins, particularly as a payment method for transactions involving tokenized real-world assets (RWA), such as government and corporate bonds, as well as real estate.”
Prospects for Stablecoin Launch
According to a report by Nikkei, by launching the pilot project in the second half of 2025, SMBC is considering a full market launch of the stablecoin in 2026, contingent upon the successful completion of the preliminary phase. The project is expected to be implemented on the Avalanche blockchain, possibly utilizing tools for creating subnets (sidechains). Japanese IT company TIS is also involved in the development.
Furthermore, SMBC is actively engaged in Project Pax, which aims to test a platform for cross-border transfers in stablecoins, collaborating with blockchain company Progmat, which was launched in July 2023. The latter provides tools for issuing such assets in the Cosmos network.
It is worth noting that SMBC is also involved in the RWA sector. At the end of 2023, the ODX exchange, a portfolio organization of Sumitomo Mitsui Financial Group, began trading tokenized securities in Japan.