Shinhan Card Tests Yen Stablecoin Payments
An era in which travelers moving between South Korea and Japan can pay conveniently with yen stablecoins, and companies can settle trade payments through blockchain instead of complex international remittance networks, is coming into view.Shinhan Card signed a business agreement with 'SBI VC Trade,'
The Shinhan Card, a financial entity, is experimenting with the use of yen stablecoins for payments. This development could simplify transactions for Japanese visitors to South Korea and facilitate smoother trade settlements. On October 20, at SBI Group headquarters in Tokyo, Shinhan Card and SBI VC Trade, operators of Japan's largest digital asset exchange, signed an agreement with SBI XDC Network APAC, a blockchain company.
The cornerstone of the pact is a proof of concept (PoC) to integrate stablecoins into real-world payment and settlement systems. The primary objective is to conduct a verification of a yen stablecoin card payment service, aiming to assess whether stablecoins can be used for payments in the same manner as conventional credit cards.
This experiment will also scrutinize the financial security measures, including AML and FDS controls, to ensure safe operations. In addition to this, the companies plan to explore the potential of blockchain technology in finance, such as wallet-to-wallet transactions and participation in the XDC Network node ecosystem. They also intend to streamline cross-border trade settlement through a PoC involving stablecoins, in hopes of achieving faster and more efficient transactions than current international remittance networks.
This cooperation, which follows Shinhan Financial Group's August agreement with Visa for digital asset and AI-based payment services, is expected to bolster Shinhan's standing in the East Asian digital payments market.
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