Main notes
- Japan was a pioneer in the stablecoin regulations, as it classifies it as “electronic payment tools” in 2022.
- SMBC explores WEB3 innovations since 2022 when Token Business Lab launched in partnership with Hashport.
- Stablecoin’s dependence on all over the world is increasing, as global leaders such as Donald Trump recognized their importance in global financing.
Sumitomo Mitsui Financial Group (SMBC)-Sumitomo Mitsui Financial Group (SMBC)-SMBLECOIN in cooperation with Ava Labs and Fireblocks. This happens as big banking players began to understand the importance of Stablecoin with a ribs, and its future request, and thus showed interest in seizing its share in the expanding market.
The Mother AVA LABS in Avalanche will set the “SMBC Stablecoin” using Blockchain technology. On the other hand, Fireblocks will be interested in Crypto’s security in the symbol management system.
To implement this project, the banking giant is ready to work with TIS, a local information technology company, to conduct experiments for the Stablecoin project in the second half of this year.
Stablecoins provides banks a way to enhance across border payments by reducing the costs of transactions and eliminating mediators, unlike the traditional Swift system, which often leads to higher fees and delay.
SMBC explores WEB3 innovations since 2022 when Token Business Lab launched in partnership with Hashport to develop Blockchain -based NFT. Later that year, the duo made an experimental version of the non-convertible Soulbound-Nfts symbols designed to verify identity.
Japanese bank experiences with Stablecoins
Last year in 2024, the Japanese Bank stated that it is planning to launch a cross -border pilot project for Stablecoin in partnership with two other banking institutions, Mizuho Financial Group and Mitsubishi UFJ Financial Group.
Japan has always taken a friend of encryption over the past decade and was among the first to offer Stablecoin regulations. In June 2022, Parliament amended the Payment Services Law, and the Fiat-PEGGDCOINS category as “electronic payment tools”.
However, the legislation restricts the edition of Stablecoins on licensed banks, registered service providers and trust companies.
Japanese banks are tracking Stablecoin’s plans quickly, as the industry is gaining momentum in the United States, while introducing friendly policies under Trump’s management.
President Trump also highlighted the importance of Stablecoins that were equipped with US dollars and how they can enhance the dominance of the dollar in the global market. Since the new legislation aims to provide greater clarity on Stablecoins in the United States, it is expected that traditional banks will enter the Stablecoin market.
In a modern development, Circle Circle USDC Stablecoin also presented it to the US Securities and Stock Exchange Committee for a preliminary general offer. The company plans to include CRCL shares on the New York Stock Exchange.
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Bhushan is enthusiastic about technology and carries a good tendency to understand the financial markets. His interest in the economy and financing draws his attention towards emerging technology markets and emerging technology. He is in a continuous educational process and keeps himself excited to share his acquired knowledge. In spare time he reads fictional excitement novels and sometimes explores his cooking skills.
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