Sumitomo Mitsui Banking Corporation (SMBC), Japan’s second-largest bank, is collaborating with technology companies to launch its own stablecoin. The partnership involves Ava Labs, developers of the Avalanche blockchain, and Fireblocks, a crypto security firm. Ava Labs will provide the blockchain infrastructure for the stablecoin while Fireblocks develops a management system for the token. Sumitomo Mitsui Banking Corporation plans to test the project with TIS, a local IT company, in the second half of 2025 with potential issuance of the stablecoin next year. This follows SMBC’s previous initiative last year to launch a pilot project for cross-border stablecoins in collaboration with Mitsubishi UFJ Financial Group and Mizuho Financial Group.