SBI & Kyobo Test Yen-Won Stablecoins on Canton Network

Japan’s SBI Group and South Korea’s Kyobo Life Insurance have completed a stablecoin based test for direct transfers between yen and won.

The proof of concept used the Canton Network as its test environment and explored a route that does not require an intermediate US dollar conversion.

The experiment is relevant to institutional digital asset settlement, although it remains a test rather than a live payment service using real funds.

Key Takeaways

• SBI and Kyobo tested direct JPY to KRW stablecoin transfers on the Canton Network without using the US dollar as an intermediary.
• The pilot used test tokens, not real funds, so it demonstrates technical feasibility rather than a live commercial service.
• SBI and Kyobo plan further digital asset cooperation, including exchanges, asset management, and new transaction based business models.

What Did SBI and Kyobo Test?

SBI Group and Kyobo Life Insurance began their proof of concept in July, using the Canton Network to test how institutional funds could move between Japan and South Korea through digital representations of the two currencies.

The firms tested a direct exchange between JPY linked and KRW linked stablecoins.

Instead of following a conventional route where yen is first converted into US dollars and then into won, the trial modeled a direct yen to won process.

What the Pilot Covered

The test examined several parts of the settlement process:

• Direct exchange between JPY and KRW stablecoin representations
• Institutional fund transfer procedures
• Foreign exchange and settlement processes
• Tracking and reconciliation of transaction data
• Handling overseas digital assets alongside domestic settlement funds

The firms used test tokens rather than production stablecoins. No live stablecoins or real institutional funds moved during the exercise.

As a result, the pilot demonstrates operational feasibility rather than proving that a commercial JPY to KRW stablecoin service is ready for use.

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Can Yen and Won Stablecoins Bypass the US Dollar?

Source: Unsplash

The most notable part of the SBI and Kyobo pilot is its direct currency route.

Traditional international transfers can involve several intermediary steps, including converting one national currency into another through the US dollar.

The stablecoin model tested by the two firms aims to simplify that process by representing yen and won digitally and allowing them to be exchanged directly.

Potential Benefits of a Direct JPY to KRW Route

According to the information provided by the firms, a direct model could potentially:

• Reduce the number of intermediary steps
• Lower transaction costs
• Shorten settlement time
• Reduce exchange rate exposure
• Improve the handling of digital assets and related settlement funds

However, these are expected benefits rather than measured results from the pilot.

SBI and Kyobo did not publish comparative figures showing exactly how much time or money the test could save.

This distinction matters because the trial demonstrates that the process can be modeled, but it does not yet establish a commercial alternative to existing settlement systems.

How Does the Canton Network Fit Into the Trial?

The Canton Network served as the test environment for the SBI and Kyobo stablecoin project.

The network has also been used for other stablecoin related proof of concept projects, making it part of a broader effort to test institutional digital asset infrastructure.

The SBI and Kyobo experiment is specifically focused on a Japan and South Korea settlement route. It is separate from other projects that have used the same network.

What Happens Next?

SBI Group and Kyobo Life Insurance plan to continue working together in areas connected to the Web3 ecosystem.

Their planned areas of cooperation include:

• Japan and South Korea digital asset exchanges
• Asset management
• New business models based on transaction structures

The next stage will be important because the current experiment used test tokens.

Neither firm has provided a production launch timeline or confirmed regulatory approval for a live JPY and KRW stablecoin route.

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How Is Ripple Connected to the SBI and Kyobo Pilot?

The project has attracted attention because both SBI Group and Kyobo Life Insurance have relationships with Ripple.

However, the information provided makes an important distinction: Ripple technology was not part of this particular JPY and KRW pilot.

SBI and Ripple have worked together since 2016. More recently, the firms partnered around the launch of RLUSD in Japan.

SBI Holdings also holds a 9% shareholding in Ripple, according to the information provided.

Ripple and Kyobo

Ripple also has a separate relationship with Kyobo Life Insurance. The companies announced a partnership to pilot tokenized Korean government bond settlement using Ripple Custody and assess stablecoin payment rails.

These relationships help explain why the test appears in discussions about Ripple, but the Canton Network pilot itself was an SBI and Kyobo experiment.

That distinction is important. The test demonstrates what SBI and Kyobo explored using Canton, while Ripple’s work with the two companies represents separate digital asset and stablecoin initiatives.

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When Could the SBI Stablecoin Route Go Live?

There is currently no production launch date provided in the supplied information.

The SBI and Kyobo project remains a proof of concept, and the firms have not announced when a live JPY and KRW stablecoin settlement route could become available.

The test nevertheless provides an early look at how institutions could approach direct currency settlement through digital assets.

What Still Needs to Be Addressed?

Several questions remain before such a system could move beyond testing:

• Regulatory approval for live stablecoin use
• Production infrastructure
• Institutional adoption
• Settlement procedures
• Operational and security requirements

South Korea has not finalized its stablecoin rules, while regulators continue to favor bank led issuance.

This regulatory environment is relevant to any future expansion of stablecoin settlement involving Korean won.

For now, the main result is technical validation. SBI and Kyobo showed that a direct JPY to KRW stablecoin process could be modeled without first converting through the US dollar, but the test does not yet establish a live commercial service.

Read Also: How Canton Network Works: Privacy, Daml Smart Contracts, and DeFi

Conclusion

SBI Group and Kyobo Life Insurance have completed an important proof of concept for direct yen and won stablecoin transfers using the Canton Network.

The trial explored whether institutional settlement could avoid the additional US dollar conversion step while potentially reducing costs, settlement time, and exchange rate exposure.

However, the project used test tokens and did not involve real funds, so it should be viewed as an early technical demonstration rather than a live financial product.

Ripple has relationships with both firms, but its technology was not part of this specific test. For users exploring digital asset markets, Bitrue offers easier and safer crypto trading.

FAQ

What did SBI Group and Kyobo Life Insurance test?

They tested direct transfers between JPY linked and KRW linked stablecoin representations using the Canton Network.

Did the pilot use real stablecoins?

No. The firms used test tokens, and no real institutional funds or production stablecoins moved during the exercise.

Does the pilot bypass the US dollar?

The tested model allowed yen linked stablecoins to exchange directly with won linked stablecoins without first converting through the US dollar.

Was Ripple involved in the Canton Network pilot?

The supplied information states that Ripple technology was not part of this specific SBI and Kyobo pilot. Both companies have separate relationships with Ripple.

When will the SBI stablecoin service go live?

No production launch timeline or regulatory approval has been provided. The current project remains a proof of concept.

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