SBI and Kyobo Test Direct Yen-Won Stablecoin Swap Without US Dollar

SBI Digital Practice and Kyobo Life Insurance have successfully tested a direct yen to won stablecoin swap on the Canton Network, bypassing the need for dollar conversion. The pilot project, which ran from July to September, was designed to explore the feasibility of cross-border institutional fund transfers using stablecoins and blockchain technology.

The test involved moving yen-linked test tokens directly into won-linked test tokens, eliminating the need for a middleman currency like the US dollar. This approach aims to reduce processing time, lower transaction costs, and minimize exposure to exchange-rate fluctuations.

According to Kyobo Life, the project has demonstrated technical feasibility and efficiency in cross-border institutional fund transfers using stablecoins and blockchain. The company described the pilot as the first cross-border institutional stablecoin test run by a Korean insurer.