Japan's Second Largest Bank Stepped into the Cryptocurrency Industry with This Altcoin!

According to a report by Japan's local news agency Nikkei, Japan's second-largest bank, Sumitomo Mitsui Financial Group (SMBC) has taken action to issue a stablecoin.

Accordingly, SMBC plans to launch its own stablecoin in collaboration with Ava Labs and Fireblocks.

Ava Labs, the team behind Avalanche***, will provide the blockchain infrastructure, while Fireblocks will develop the token management system.

The bank plans to start testing in the second half of 2025, with a potential stablecoin launch expected to take place in early next year.

While Japan has made significant strides in stablecoins, stablecoins were introduced in the country at an early date. In June 2022, Japan amended the "Payment Services Law" by recognizing stablecoins as "Electronic Payment Instruments." Under these changes, only licensed banks, service providers, and trust companies will be allowed to issue such stablecoins.

While Japan is taking early steps in the realm of stablecoins, U.S. President Donald Trump emphasized the importance of introducing dollar-backed stablecoins, calling on lawmakers to create the necessary regulatory framework for this. As a stablecoin law that aims to bring more clarity to stablecoins in the U.S. is expected to be approved in about two months, it is anticipated that more traditional banks will enter the stablecoin sector.