Kyobo Life Insurance and SBI Digital Practice completed a pilot that tested direct exchanges between yen- and won-denominated stablecoins.
Kyobo Life and SBI Digital Practice ran the pilot from July in the Canton Network test environment.
The pilot modelled institutional fund transfers, foreign exchange transactions, and settlement between Japan and South Korea.
The companies tested direct yen-to-won stablecoin exchanges without converting the funds through the U.S. dollar.
Kyobo Life and SBI Digital Practice did not move real institutional funds or live stablecoins during the pilot.
The companies used test tokens to simulate institutional digital asset transfers and cross-border settlement.
The pilot allowed Kyobo and SBI Digital Practice to examine how participants could track transaction information in real time.
The companies also tested procedures for receiving digital assets from overseas and processing related settlement activity in South Korea.
Canton Network Handles the Institutional Settlement Test
Kyobo Life and SBI Digital Practice used Canton Network to test the cross-border transaction and settlement process.
Canton Network gives financial institutions privacy and permission controls for digital asset transactions and settlement activities.
The network allowed Kyobo Life and SBI Digital Practice to simulate cross-border settlement without moving real institutional funds.
The test also allowed the companies to examine how institutions could monitor transaction data during settlement.
SBI Digital Practice has expanded its Canton Network work through projects focused on institutional digital finance.
SBI Digital Practice develops financial infrastructure and applications that use blockchain technology for institutional markets.
The company’s projects cover institutional settlement, tokenised assets, and stablecoin-related financial applications.
Other financial companies have used Canton Network to test stablecoin settlement and institutional blockchain applications.
Some South Korean financial firms have used Canton-related projects to examine how Korean assets could reach overseas markets.
The Kyobo Life pilot instead focused on direct cross-border currency exchange and settlement between Japan and South Korea.
The pilot examined whether institutions could exchange yen- and won-denominated stablecoin representations without using the U.S. dollar.
Kyobo Life and SBI Explore Direct Yen-Won Stablecoin Transfers
The Kyobo Life pilot follows a separate Japan-South Korea stablecoin project between SBI Digital Practice and Nodeinfra.
SBI Digital Practice and Nodeinfra announced Project Musubi in August to develop a Japan-Korea payment network.
Project Musubi aims to support yen-won settlement between Japanese and South Korean institutions through Canton Network.
The two companies plan to use test tokens during development before introducing commercial stablecoin settlement.
SBI Digital Practice and Nodeinfra have not announced a commercial launch date for live yen-won stablecoin settlement.
The company has developed Japan’s yen stablecoin infrastructure through JPYSC, its yen-denominated stablecoin.
SBI launched JPYSC through SBI Shinsei Trust Bank earlier this year.
The company has since used JPYSC in lending initiatives and projects involving tokenised assets.
Kyobo Life and SBI plan to explore additional projects involving digital asset exchanges and asset management between Japan and South Korea.
The companies are developing these projects while South Korea continues working on regulations for won-backed stablecoins.
