Shinhan Card and SBI Group Initiate Yen Stablecoin Payment Testing for Japan-Korea Transactions

This collaboration aims to enhance the efficiency of cross-border payments, addressing longstanding issues in traditional remittance systems.

• Shinhan Card and SBI Group signed a business agreement on October 20, 2026, to test yen-denominated stablecoin payments.
• The proof-of-concept targets multiple payment methods, including card-linked payments for travelers and wallet-to-wallet transfers.
• The initiative leverages blockchain technology to improve transaction speed and reduce costs in cross-border trade settlements.

• Japan and South Korea are advancing digital asset regulations, reflecting a broader East Asian interest in blockchain technology for financial infrastructure.
• Previous pilots have demonstrated successful direct currency exchanges between yen and won, eliminating the need for USD intermediaries.
• SBI launched a yen stablecoin platform in June 2026, setting the stage for this latest collaboration aimed at improving payment efficiency.

On October 20, 2026, Shinhan Card President Park Chang-hoon and SBI VC Trade Representative Director Tomohiko Kondo formalized a significant step in cross-border finance by signing a proof-of-concept (PoC) agreement in Tokyo. This initiative is designed to test yen-denominated stablecoin payments, which could revolutionize how transactions are conducted between Japan and South Korea. The PoC will focus on integrating stablecoin payments with existing payment card systems, allowing Japanese visitors to South Korea to make seamless transactions.

The collaboration also aims to facilitate wallet-to-wallet transfers and trade settlements using the XDC Network infrastructure. This is particularly relevant given the historical inefficiencies associated with traditional remittance networks, which often involve high costs, delays, and foreign exchange risks. By leveraging blockchain technology, the initiative seeks to provide a faster and more direct means of transferring value between the two countries.

The testing phase will assess not only the technical integration of these systems but also the effectiveness of anti-money laundering (AML) and fraud detection controls. This is crucial as both nations are currently navigating regulatory frameworks that support digital assets and stablecoins. The PoC builds on earlier successful pilots conducted by SBI affiliates and Korean institutions, which demonstrated the feasibility of direct currency-pair settlements without relying on USD as an intermediary.

As the PoC progresses, it will be essential to monitor how these developments align with ongoing regulatory discussions in both Japan and South Korea. The collaboration represents a significant move towards modernizing financial transactions in the region, potentially setting a precedent for future cross-border payment solutions.

• Travelers: Japanese tourists in South Korea will benefit from easier payment methods.
• Businesses: Companies engaged in cross-border trade will experience reduced transaction costs and faster settlements.
• Financial institutions: Banks and payment processors may need to adapt to new technologies and regulatory frameworks.

• Regulatory developments: Keep an eye on how Japan and South Korea finalize their stablecoin regulations, as this will impact the initiative's scalability.
• Market adoption: Watch for announcements regarding commercial deployment and user adoption rates of the stablecoin payment system.
• Technological advancements: Monitor improvements in blockchain technology that could enhance transaction efficiency and security.