According to Nikkei News from Foresight News, Japan's second-largest bank, Sumitomo Mitsui Banking Corporation, is planning to collaborate with the Ava Labs team behind Avalanche and Fireblocks to launch its own stablecoin. Ava Labs will provide blockchain technology for establishing the stablecoin, while the crypto security company Fireblocks will develop a token management system. The banking giant plans to collaborate with local IT company TIS to experiment with the project in the second half of 2025 and potentially issue a stablecoin next year.

Last year, Sumitomo Mitsui Banking Corporation stated that it planned to launch a pilot cross-border stablecoin project with two other major Japanese banking institutions, Mitsubishi UFJ Financial Group and Mizuho Financial Group.