Sumitomo Mitsui Financial Group Plans to Collaborate with Ava Labs and Fireblocks to Develop Stablecoins

According to a report by Nikkei, Japan’s Sumitomo Mitsui Financial Group (SMFG) is planning to collaborate with Avalanche blockchain development team Ava Labs and cryptocurrency security firm Fireblocks to develop a stablecoin pegged to fiat currency.

It is reported that Ava Labs will be responsible for establishing the infrastructure of the stablecoin using blockchain technology, while Fireblocks will develop its management system.

This banking giant will conduct related trials in collaboration with local IT company TIS in the second half of this year and plans to issue the stablecoin next year.

In September last year, blockchain startup Progmat and blockchain interoperability development company Datachain announced the launch of a trial program for a cross-border stablecoin transfer platform called “Project Pax,” with participating institutions including Sumitomo Mitsui Financial Group, Mitsubishi UFJ Financial Group (MUFG), Mizuho Financial Group, and SBI Holdings.