Sumitomo Mitsui Financial Group (SMFG), Japan’s second-largest bank, has partnered with Ava Labs and Fireblocks to launch a stablecoin, marking a significant step forward in blockchain adoption within the nation’s financial sector. This collaboration aims to streamline cross-border transactions and asset settlements, particularly for business payments. The stablecoin’s development will be supported by TIS, Inc., which provides infrastructure and experimentation expertise. SMFG’s move is expected to increase liquidity in decentralized finance (DeFi) ecosystems due to its potential to facilitate intercompany payments and trade across borders, potentially shaping how global payments are handled in the future. This new stablecoin launch aligns with Japan’s amended Payment Services Act, which allows for regulated stablecoin issuance, enabling financial institutions to explore blockchain-based solutions for real-world asset settlements like real estate and corporate bonds. The collaboration signals a potential shift towards more efficient and cost-effective cross-border payments as established players like SMFG actively embrace the transformative potential of blockchain technology.