Shinhan Card and SBI units to explore yen stablecoin payments in South Korea
In brief
- Shinhan Card is exploring yen-backed stablecoin payments with two SBI Holdings subsidiaries, SBI said.
- Card-linked payments for Japanese visitors to South Korea are one possible use.
- Wallet-to-wallet transfers and cross-border trade settlement are also under study.
- No stablecoin has been named, and no trial or launch timeline has been set.
- JPYSC's role is unconfirmed: SBI hasn't said whether its stablecoin will be part of the tests.
What the partners plan to test
SBI VC Trade and SBI XDC Network APAC are both subsidiaries of Tokyo-based financial services company SBI Holdings. Card-linked payments for Japanese visitors are the headline use case. They aren't the only one.
The companies said they'd also study wallet-to-wallet transfers and the use of stablecoins to settle cross-border trade payments, and the work is set to include systems to detect suspicious transactions and meet anti-money laundering rules.
Shinhan Card serves around 20 million cardholders. It said it'll tie the project to Shinhan Financial's broader digital-asset push, which includes an August agreement with Visa to explore stablecoin issuance, transfers and card settlement.
Still at a preliminary stage
Nothing is live yet.
The process is still at a preliminary stage, according to CoinDesk's report. The firms haven't named the stablecoin they plan to test, and they haven't set a timeline for trials (let alone a commercial launch). So it's not accurate to say Japanese tourists can pay in South Korea with yen stablecoins today.
Where JPYSC fits (or doesn't)
SBI already distributes JPYSC, a yen-backed stablecoin issued by SBI Shinsei Trust Bank and introduced with Startale Group in June. The token had about 20.1 billion yen ($127 million) in circulation as of Sept. 7, according to SBI VC Trade.
There are limits on it, though. JPYSC is restricted to SBI VC Trade accounts and can't yet be moved to external wallets. Its circulation on public blockchains depends on legal and tax clarity as well as regulatory approval.
Does that make JPYSC the obvious candidate for the Korea tests? The companies haven't said whether it'll form part of the test program, and that's the open question to watch as SBI and Shinhan share more details.
Frequently asked questions
Can Japanese visitors pay with yen stablecoins in South Korea now?
No. Shinhan Card and the SBI subsidiaries are only exploring the idea, and the process is at a preliminary stage. The firms haven't named the stablecoin they plan to test or set a timeline for trials or a commercial launch.
Is SBI's JPYSC stablecoin part of the Shinhan Card tests?
The companies haven't said whether JPYSC will form part of the test program. JPYSC is a yen-backed stablecoin issued by SBI Shinsei Trust Bank. It's currently limited to SBI VC Trade accounts and can't yet be moved to external wallets.
