Shinhan and SBI are teaming up to test yen stablecoins for tourist spending between Japan and South Korea. The two financial groups will run a joint pilot to see whether the digital tokens can make it easier — and cheaper — for travelers to pay for things across the two countries. The test also looks at whether stablecoins can speed up trade settlement between South Korean and Japanese businesses.
What the pilot will actually do
The companies haven't said exactly where the tests will take place or how many people will take part. But the scope is clear enough: they'll check if yen-pegged stablecoins can handle everyday tourist purchases, and whether the same rails work for commercial payments between the two countries. That means two very different use cases in one trial — a traveler buying lunch in Tokyo with a token tied to the yen, and a Korean exporter getting paid by a Japanese buyer without waiting through traditional banking channels.
Yen stablecoins are digital tokens designed to hold a steady value against the Japanese currency, usually backed by deposits or short-term government debt. They sit somewhere between a bank deposit and a payment app balance, and they're meant to move across borders faster than a wire transfer. For tourists, that could mean skipping currency exchange counters and card fees. For businesses, it could mean shorter settlement times.
Safeguards for travelers
Shinhan and SBI say they'll assess safeguards for travelers using the stablecoins. That's the part regulators will watch closely. Stablecoins have drawn scrutiny in both countries over how customer funds are protected, what happens if the issuer fails, and how anti-money-laundering rules apply when tokens cross borders. The pilot will need to show that a tourist's money is safe if something goes wrong, and that the system can flag suspicious transactions without slowing down ordinary purchases.
The two companies didn't name the specific safeguards they'll test, but the review is part of the pilot's design rather than an afterthought. That suggests they're trying to get ahead of regulators who have been cautious about letting stablecoins into retail payments.
The trade settlement angle
The trade settlement test is arguably the bigger prize. South Korea and Japan do billions of dollars in business each year, and much of it still moves through correspondent banking networks that can take days to clear. A stablecoin built on a shared ledger could cut that to minutes, at least in theory. The pilot will evaluate whether stablecoins can speed up trade settlement between the two countries — a question that matters well beyond tourism.
If the test works, it could give small and mid-sized exporters a cheaper way to get paid. If it doesn't, the companies will have learned where the plumbing breaks.
What comes next
Neither Shinhan nor SBI has given a timeline for the pilot or said when results might be published. The companies also haven't said whether the test will involve real customer money or simulated transactions. Those details will matter to regulators in both Seoul and Tokyo, who will decide whether the model can move from a pilot to a live service. For now, the project is a test — not a product — and the next milestone is the first round of results, which the companies have yet to schedule.
