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Sumitomo Mitsui Financial Group (SMFG) has made a strategic investment in Hashed Venture Fund III, signaling a strong commitment to bridging traditional finance and the emerging Web3 ecosystem in Japan.
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This investment aims to foster collaboration between Japan’s established financial institutions and blockchain innovators, particularly focusing on the digitization of cultural assets through NFT technology.
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According to COINOTAG, SMBC Nikko Securities, a subsidiary of SMFG, is spearheading the “Proof of Japan” initiative, which leverages NFTs to preserve and monetize Japan’s rich cultural heritage.
Sumitomo Mitsui Financial Group invests in Hashed Venture Fund III to enhance Japan’s finance-Web3 collaboration, focusing on NFT digitization of cultural assets.
SMFG’s Strategic Investment in Hashed Venture Fund III Strengthens Japan’s Blockchain Ecosystem
On June 5, 2025, Sumitomo Mitsui Financial Group’s SMBC Nikko Securities announced its investment in Hashed Venture Fund III, a blockchain-focused venture fund. This move represents a calculated effort to deepen the integration of blockchain technologies within Japan’s financial sector. The investment is expected to accelerate innovation by supporting startups that specialize in Web3 applications, including decentralized finance (DeFi), non-fungible tokens (NFTs), and other blockchain-driven solutions.
By aligning with Hashed, a prominent player in the blockchain venture capital space, SMFG is positioning itself at the forefront of Japan’s transition towards a more digitized financial landscape. This strategic partnership is designed to leverage Hashed’s expertise in identifying disruptive blockchain projects, thereby enhancing SMFG’s capacity to adapt to evolving market demands and regulatory frameworks.
SMBC Nikko Leads NFT Digitization of Cultural Assets Under “Proof of Japan”
One of the most notable aspects of this collaboration is SMBC Nikko’s leadership in the “Proof of Japan” project, which focuses on the digitization of cultural assets using NFT technology. This initiative aims to preserve Japan’s cultural heritage by creating verifiable digital representations of artifacts, artworks, and historical items. Through NFTs, these assets gain enhanced liquidity and accessibility, opening new avenues for cultural engagement and investment.
Industry analysts from Coincu highlight that such projects not only promote cultural preservation but also stimulate the domestic NFT market by introducing unique, high-value digital collectibles. This aligns with broader trends in Japan’s blockchain adoption, where financial institutions are increasingly exploring NFT applications beyond art, including real estate, intellectual property, and entertainment sectors.
Historical Context and Market Impact of SMFG’s Blockchain Initiatives
SMFG’s investment in Hashed Venture Fund III builds on a history of blockchain collaborations within Japan’s financial sector. Previous partnerships with technology providers such as Fireblocks and Avalanche have laid the groundwork for integrating secure digital asset custody and scalable blockchain infrastructure. These efforts reflect a growing institutional confidence in blockchain’s potential to transform traditional finance.
Market data as of June 5, 2025, shows Ethereum (ETH) maintaining a dominant position with a market capitalization exceeding $314 billion and daily trading volumes around $18 billion. This robust activity underscores the increasing relevance of Ethereum-based solutions in Japan’s blockchain ecosystem, particularly in NFT and DeFi applications supported by SMFG’s investments.
Regulatory and Technological Factors Driving Web3 Adoption in Japan
Japan’s regulatory environment continues to evolve, fostering a more supportive framework for blockchain innovation. SMFG’s strategic move aligns with these regulatory advancements, positioning the group to capitalize on emerging opportunities while ensuring compliance. The financial sector’s cautious yet proactive approach reflects a balance between innovation and risk management.
Technological advancements, including improvements in blockchain scalability and interoperability, further catalyze the adoption of Web3 solutions. SMFG’s investment in Hashed Venture Fund III is expected to accelerate the development of such technologies, enabling more efficient and secure digital asset transactions within Japan’s financial markets.
Conclusion
Sumitomo Mitsui Financial Group’s investment in Hashed Venture Fund III marks a pivotal step in integrating traditional finance with the Web3 ecosystem in Japan. By supporting NFT digitization projects like “Proof of Japan,” SMFG is not only preserving cultural heritage but also fostering innovation in the blockchain space. This strategic initiative reflects a broader trend of financial institutions embracing blockchain technology to enhance operational efficiency and unlock new market opportunities. As regulatory frameworks and technological capabilities advance, SMFG’s proactive engagement positions it as a key player in Japan’s evolving digital economy.
