News

SMBC joins Fireblocks and Ava Labs to study stablecoin use

Thursday 3 April 2025 11:29 CET | News

Sumitomo Mitsui Financial Group (SMBC) has decided to work with Ava Labs, Fireblocks, and IT service provider TIS to assess the commercial use of stablecoins in Japan.

 

The initiative will focus on developing a framework for issuing and circulating these digital assets, as well as analysing regulatory considerations and potential real-world applications.

 

Sumitomo Mitsui Financial Group (SMBC) has decided to work with Ava Labs, Fireblocks, and IT service provider TIS to assess the commercial use of stablecoins in Japan.

 

Exploring stablecoin use cases in financial markets 

A primary aspect of the collaboration involves examining how stablecoins could facilitate settlements for tokenized assets, including government bonds, corporate debt, and real estate. While the companies have yet to provide a timeline for potential implementation, the effort aligns with noticeable industry interest in leveraging stablecoins for financial transactions. 

Stablecoins, digital assets tied to fiat currencies such as the JPY or USD, have seen significant growth, with their market capitalisation rising nearly 50% over the past year to approximately USD 228 billion according to Coindeks. 

Beyond their role in cryptocurrency markets, they are increasingly used for payments and remittances due to their efficiency compared to traditional banking systems. Various financial entities, including global asset managers and government institutions, are making moves to establish a presence in this sector. 

Japan has been advancing its regulatory framework for stablecoins, recognising them as electronic payment instruments under the revised Payment Services Act in 2023. SMBC has previously engaged in multiple digital asset initiatives. In 2022, it established a digital asset custody service, and a year earlier, it collaborated with asset tokenization firm Securitize to conduct tests on security token issuance.

Circle’s introduction of USDC in Japan 

In March 2025, Circle, a major stablecoin issuer, introduced its USDC token in Japan after obtaining the necessary regulatory approvals, partnering with a subsidiary of financial services provider SBI Holdings.  

Circle and SBI Holdings first established their partnership in 2023, aiming to advance stablecoin distribution, banking integrations, and Web3 technology development within the Japanese market. This announcement represeneds a continuation of these efforts, with a focus on increasing USDC liquidity and strengthening Japan’s digital finance infrastructure.


Source: Link


Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: cryptocurrency, partnership, stablecoin, digital assets
Categories: DeFi & Crypto & Web3
Companies: Ava Labs, Fireblocks, SMBC
Countries: Japan
This article is part of category

DeFi & Crypto & Web3

Ava Labs

|

Fireblocks

|

SMBC

|
Discover all the Company news on Ava Labs and other articles related to Ava Labs in The Paypers News, Reports, and insights on the payments and fintech industry: