SMBC Nikko Joins Forces to Build Compliant DeFi Gateway for Japan

SMBC Nikko Securities and four other organizations have signed an agreement to build a Japan-focused decentralized finance (DeFi) gateway. The DeFi Gateway consortium, comprising SMBC Nikko, Nethermind, Uniswap Labs, Base, and Nyx Foundation, aims to create regulatory-compliant liquidity pools with anti-money laundering and counterterrorism financing controls built in.

The project will use Uniswap v4 hooks to build the compliant liquidity pools, which will be paired with AI-powered investment vaults featuring simplified user interfaces. The goal is to make DeFi accessible to Japanese institutions that have been hesitant due to regulatory concerns and operational risks.

SMBC Nikko will lead regulatory dialogue and compliance expertise for the project, while Nethermind will handle technical design and smart contract security. Uniswap Labs contributes protocol integration expertise, Base supports ecosystem deployment, and Nyx Foundation advises on market-making strategies for the liquidity pools.

The consortium plans to share progress with Japan's Financial Services Agency as the work proceeds, aiming to inform the regulator's broader framework for DeFi oversight. The project targets completion by mid-2027.