Japan's Second Largest Bank SMBC Rolls Up Its Sleeves for a Stablecoin Project.
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Introduction
Developments in the cryptocurrency sector continue to increase in the world. Stable cryptocurrencies and their profits seem to have made banks salivate recently. The latest development came from Japan. Japan's second largest bank, Sumitomo Mitsui Financial Group (SMBC), plans to launch its own stablecoin in collaboration with Ava Labs and Fireblocks. It is thought that tests for the stablecoin will begin in the second half of 2025 and then the stablecoin will be released in 2026.
Stablecoin and SMBC
Ava Labs, one of the companies that will work within the scope of the project, will create the Blockchain infrastructure, while Fireblocks will develop the token management system. In this way, SMBC aims to reduce transaction costs by accelerating cross-border payments with the stablecoin.
The Japanese bank SMBC has previously made various initiatives in the Blockchain and Web3 field. The biggest example of this is the NFT sector. SMBC started developing NFT-based services by establishing the Token Business Lab with HashPort in 2022. Also in the same year, it started the trial process of a token called soulbound. These tokens would be used for identity verification purposes.
Conclusion
SMBC aims to reduce transaction costs by accelerating cross-border payments with the stablecoin it plans to issue. We think that this stablecoin initiative will be an important innovation in Japan's digital finance ecosystem.
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