Kyobo Life Insurance and SBI Group Pioneer Direct Yen-Won Stablecoin Exchange

Kyobo Life Insurance and SBI Group have completed a pilot for direct yen-won stablecoin exchange without using USD as an intermediary currency. This marks the first time a South Korean insurer has verified the entire process of institutional fund transfer, currency exchange, and settlement on a blockchain.

The pilot, which began in July, utilized the test environment of Canton Network, a blockchain designed for financial institutions. It involved the direct conversion of yen stablecoins into won stablecoins during the process of transferring funds from Japan to South Korea.

Kyobo Life Insurance explained that the existing approach requires multiple conversion steps, creating potential risks related to time, cost, and exchange rate fluctuations. The pilot confirmed the potential for reduced processing times and cost savings from simplified intermediary exchange procedures through the direct exchange structure.