Shinhan Card, Japan's SBI Group to Run Pilot for Yen Stablecoin Payments
Shinhan Card said on October 21 it will work with units of Japan's SBI Group to test the commercial viability of payment and settlement services using a yen-denominated stablecoin.The agreement includes SBI VC Trade, a Japanese digital-asset exchange, and blockchain company SBI XDC Network APAC. The three companies plan to conduct a joint proof of concept, or PoC, aimed at expanding a Web3-based global payments infrastructure.The partnership will focus on card payments linked to a yen stablecoin, wallet-to-wallet, or W2W, transfers and payments between digital wallets, and cross-border trade settlement. The companies will also review possible participation in the node ecosystem of the XDC blockchain network.The card-payment pilot will test how a yen stablecoin can be integrated into existing card-payment systems and whether it is convenient in real-world use. The companies plan to examine whether Japanese tourists in South Korea can use stablecoins for payments with a service experience comparable to conventional cards. They will also assess security and risk-management systems, including anti-money laundering safeguards and a fraud detection system.In cross-border settlement, the companies will test whether stablecoins can shorten processing times and improve cost efficiency compared with conventional international remittance methods. Based on the results, Shinhan Card and the SBI units plan to flesh out follow-up cooperation measures, with a long-term goal of improving payment convenience for users traveling between South Korea and Japan.The partnership is part of Shinhan Financial Group's broader strategy to expand its global digital-asset infrastructure. The group signed a business agreement with Visa Group in August covering future financial businesses including digital assets and artificial intelligence-based payments. Shinhan Card plans to use the tie-up with SBI Group to secure stablecoin payment technology and explore ways to expand its overseas payment and settlement services.A Shinhan Card official described the partnership as a first step toward creating a new payment paradigm linking digital assets and traditional finance. The company said it will strengthen its technology base in Web3 payment and settlement, including stablecoins, through a range of joint projects and boost its competitiveness in the global digital-payments market.