SBI and Kyobo Complete Japan‑Korea Stablecoin Pilot Bypassing Dollar

SBI Digital Practice, a subsidiary of SBI Holdings, and South Korean insurer Kyobo Life have finished a cross‑border pilot that moved value from Japan to South Korea using test tokens modeled on yen‑ and won‑denominated stablecoins. The trial showed that institutional transfers could be settled directly between the two currencies without routing through the U.S. dollar.

Direct Yen‑Won Settlement

The pilot, conducted in a Canton Network test environment, sent a yen‑linked token from Japan and received a won‑linked token in South Korea. The process covered the full workflow: transfer, exchange, settlement, receipt and holding of the digital tokens.

Potential Benefits

• Reduced processing time compared with traditional FX routes that involve multiple intermediaries.
• Lower conversion costs by eliminating the dollar leg.
• Real‑time transaction tracking on a regulated public blockchain.

Technical Context

Canton Network is designed for regulated financial institutions, offering privacy controls and on‑chain identity and compliance tools. The pilot used test tokens rather than commercially issued stablecoins, so the results reflect technical feasibility rather than commercial performance.

Broader Industry Activity

SBI Group is also developing JPYSC, a yen‑backed stablecoin launched in June for corporate treasury and cross‑border payments. In South Korea, multiple lenders are exploring direct stablecoin‑based FX settlement with Chainlink. Both SBI and Kyobo have ongoing collaborations with Ripple on tokenized assets and government‑bond settlement.

Next Steps

SBI Digital Practice and Kyobo plan further cooperation in digital‑asset conversion, overseas investment, asset management and tokenized‑asset transfers, contingent on the evolution of legal frameworks and market infrastructure.