Sumitomo Mitsui Financial Group (SMBC), along with TIS Inc, Ava Labs, and Fireblocks, has entered a Memorandum of Understanding (MoU) to develop a framework for stablecoins in Japan. This collaboration aims to explore issuing stablecoins pegged to the US dollar and Japanese yen, and to consider stablecoins as a settlement option for tokenized real-world assets like stocks and bonds. The total stablecoin market cap has surpassed $227 billion, indicating growing interest and regulatory focus. Discussions around stablecoins have gained momentum globally, with officials recognizing their potential impact on financial markets. US Treasury Secretary Scott Bessent has highlighted the role stablecoins could play in expanding the dollar's international use. Additionally, industry leaders are advocating for regulatory reforms concerning stablecoin issuers to enhance customer yield distribution, though this has raised concerns about the impact on traditional lending practices.

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