Japanese Banking Giant SMBC Collaborates with Fireblocks, Ava Labs and TIS to Explore Stablecoin Commercial Use Cases

One of Japan’s largest banks along with a collaborative group of technology providers are coming together to explore stablecoin initiatives, driving momentum in the Japanese digital asset space. 

Sumitomo Mitsui Banking Corporation (SMBC), a subsidiary of Sumitomo Mitsui Financial Group (SMFG); digital asset infrastructure provider Fireblocks; Ava Labs, a leading blockchain company; and prominent Japanese IT services company TIS, have signed a Memorandum of Understanding (MoU) to initiate joint discussions on the commercial use of stablecoins. 

The four parties have engaged in preliminary discussions to assess the possibility of leveraging stablecoins for wholesale payments between financial institutions and businesses in Japan and beyond. Additionally, the initiative aims to examine potential use cases that utilize the defining features of stablecoins, including as a settlement method for tokenized financial and real-world assets (RWAs), such as government and corporate bonds, as well as real estate. 

“Japan’s financial infrastructure is rapidly evolving as innovation accelerates,” said Roi Hirata, Head of Japan at Ava Labs. “Collaborating with SMBC, Fireblocks and TIS marks an important institutional milestone advancing the exploration of Avalanche’s robust technology for real world applications.”

In 2023, the Payment Services Act was amended in Japan, creating more regulatory clarity and allowing stablecoins to officially become recognized as electronic payment instruments. With the ability to participate in a new model of financial innovation, Japan’s institutions and businesses began to explore use cases for cross-border payments and settlement activities, bolstering the region for modernization.

"Stablecoins aim to transform how banks and businesses operate, especially across borders,” said John Nahas, Chief Business Officer at Ava Labs. “We’re honored to work with SMBC, Fireblocks and TIS to test and develop infrastructure and systems to expand the use of stablecoins across Japan and beyond on Avalanche."

With this proof-of-concept, the group will collaborate to develop an elegant framework for stablecoin issuance and circulation, including exploring key technical, regulatory, and market infrastructure requirements.

About Sumitomo Mitsui Banking Corporation (SMBC) 

Headquartered in Tokyo, Japan, SMBC is one of the biggest banks in Japan, with branches established around the world, including in Australia, Europe, Canada, Brazil and Indonesia. SMBC and its group of companies offer various banking-focused financial services. SMBC owns banking businesses in any other countries outside of Japan. It is also engaged in other businesses such as leasing, securities, credit cards, investment, home ownership credit securities, venture capital, and other related credit facility businesses. 

For more information, please visit www.smbc.co.jp 

About Ava Labs 

Ava Labs is a leading blockchain technology company dedicated to empowering organizations to build scalable decentralized applications (dApps) and custom blockchains. Headquartered in New York City, Ava Labs is driven by a dynamic team that creates cutting-edge tools for developers, enabling them to harness the power of the community-driven Avalanche Blockchain Network. Ava Labs supports the launch of Avalanche Layer 1 blockchains, helping clients—from startups to government agencies, financial institutions, gaming companies, and telecoms—transform industries and pioneer new ones. 

About AvaCloud

AvaCloud is a managed blockchain service empowering organizations to effortlessly build, deploy, and scale high-performance decentralized Layer one networks. AvaCloud provides a no-code platform, automated infrastructure, and comprehensive support, enabling businesses to focus on innovation without the complexities of blockchain management.