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- Shinhan Card agreed to test yen-stablecoin payments with SBI VC Trade and SBI XDC Network APAC.
- The Tokyo agreement covers Japanese visitors' card payments, digital wallet transfers, and cross-border trade settlement.
- The partners have not yet identified the specific yen stablecoin or participating merchants for the trials.
South Korea’s Shinhan Card has agreed to test yen-stablecoin payments with Japanese crypto exchange SBI VC Trade and blockchain payments provider SBI XDC Network APAC. The trials cover Japanese visitors’ card payments, transfers directly between digital wallets and the settlement of payments for cross-border trade.
The agreement was signed at SBI’s headquarters in Tokyo on Oct. 20. The companies will run a joint proof-of-concept program covering payments between Japan and South Korea.
Card Trial Focuses on Japanese Visitors
The card trial will assess whether Japanese visitors to South Korea can use yen-stablecoin-linked cards as easily as conventional cards. The aim is to connect digital assets with familiar ways of paying at physical shops.
The partners will examine the customer experience, transaction steps and the technical and operating arrangements needed to support those payments. Shinhan Card is part of Shinhan Financial Group and has about 20 million cardholders, according to SBI. The companies have not yet identified the yen stablecoin or participating merchants.
Wallet Transfers and Trade Settlement Also Planned
Wallet-to-wallet payments form another part of the agreement. The companies will explore how stablecoin payments can connect with existing financial and payment infrastructure, alongside the card-linked tests.
For trade payments between Japan and South Korea, the partners want to assess whether stablecoins can provide faster, more efficient settlement than existing international money-transfer networks. That work concerns payments between businesses trading across borders, extending the program beyond spending by individual travelers.
SBI XDC Network APAC is a joint venture between SBI Holdings and TradeFinex Tech, which develops the XDC Network. It provides blockchain infrastructure for trade finance and promotes the network’s use across the Asia-Pacific region. The agreement also includes exploring participation in XDC’s network infrastructure.
Tests Will Include Fraud and Money-Laundering Controls
The card-payment trial will also assess anti-money-laundering checks and systems that detect unusual transactions. The partners want to establish how those controls can work alongside the stablecoin payment process. The companies plan to use the test results to decide next steps for each payment service.
