Japan’s SMBC bank plans stablecoin launch by 2026

Japan’s second-largest financial group, Sumitomo Mitsui Financial Group (SMFG), which operates SMBC Bank, has announced the launch of its own stablecoin. The new digital asset will undergo testing in the second half of 2025, with a full release scheduled for 2026.
 

The project will be developed in collaboration with key industry players — Ava Labs and Fireblocks. Ava Labs will handle blockchain infrastructure, while Fireblocks is tasked with creating the stablecoin management system. Local IT company TIS has also joined the initiative to provide technical support during testing.
 

Step Toward Digital Transformation

This is not SMBC’s first foray into blockchain. In 2022, the bank launched Token Business Lab in partnership with HashPort to explore NFT-related services. Later, they tested the issuance of soulbound tokens — digital identity markers linked to individual users.
 

In September 2024, SMBC also announced plans for a pilot cross-border stablecoin initiative in partnership with two major Japanese banks — Mitsubishi UFJ and Mizuho Financial Group.
 

Regulatory Shift on the Horizon

As SMBC moves forward with blockchain adoption, Japan’s regulatory landscape is evolving. The Financial Services Agency (FSA) is considering classifying cryptocurrencies as financial products, which would provide a clearer legal framework for banks to operate in the digital asset space.
 

Against this backdrop, SMBC’s stablecoin project is seen as a strategic move toward tokenized finance and establishing a strong position in the future digital economy.