Japanese visitors may be able to pay with yen stablecoins in South Korea under Shinhan-SBI pact
The collaboration will explore card-linked merchant payments for Japanese visitors in South Korea and peer-to-peer wallet transfers among broader cross-border trade remittances.
In a collaboration between South Korean and Japanese financial institutions, Japanese tourists to South Korea may soon have the option to pay using yen stablecoins linked to payment cards. This initiative involves experiments conducted by Shinhan Card, a unit of Shinhan Financial, in partnership with SBI Holdings' subsidiaries. These companies aim to explore yen-backed stablecoin payments between the two nations, with a focus on wallet-to-wallet transfers and cross-border trade payments.
The project also includes measures to detect suspicious transactions and comply with anti-money laundering rules. So far, the trial phase remains in its early stages, with no specific stablecoin or timeline announced. SBI Holdings is already using a yen-backed stablecoin called JPYSC, issued by SBI Shinsei Trust Bank and launched in collaboration with Startale Group in June.
However, the circulation of JPYSC on public blockchains is contingent on legal and tax considerations, as well as regulatory approval. While Shinhan Card serves approximately 20 million cardholders, the firm has not confirmed whether JPYSC will be part of the test program. The collaborations align with Shinhan Financial's broader digital-asset strategy, which includes a partnership with Visa to explore stablecoin issuance, transfers, and card settlement.
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