The parent company Sumitomo Mitsui Financial Group (SMBC) has signed a memorandum with the IT company TIS, as well as with Ava Labs and Fireblocks. The document outlines the creation of a framework for launching stablecoins and exploring potential use cases for them.
This is reported by Finway
The pilot project is expected to take place in the second half of 2025. SMBC will be an active participant in both the stablecoin sector and the field of tokenized real-world assets (RWA).
According to the memorandum, the partners plan to develop a framework for the issuance and circulation of stablecoins, considering key technical and regulatory aspects both in Japan and abroad.
“Additionally, as part of the initiative, potential use cases will be explored that leverage the defining features of stablecoins, particularly as a method of settlement for transactions involving tokenized real-world assets (RWA), such as government and corporate bonds, as well as real estate.”
According to Nikkei, the launch of the pilot project is planned for the second half of 2025. If the testing is successful, a full release of the stablecoin could occur as early as 2026.
The project is likely to be based on the Avalanche blockchain with possible use of tools for creating a subnet (sidechain). The Japanese IT company TIS is also involved in the development.
It is worth noting that SMBC is a participant in the Project Pax, which aims to test a platform for cross-border transfers in stablecoins with the company Progmat, launched in July 2023. Progmat provides the necessary tools for issuing such assets on the Cosmos network.
Furthermore, SMBC is actively working in the RWA sector. At the end of 2023, the exchange ODX, which is part of the portfolio organization Sumitomo Mitsui Financial Group, began trading tokenized securities in Japan.