SBI $XDC Network APAC, the cryptocurrency exchange SBI VC Trade — part of Japan's SBI Group — and South Korean credit card company Shinhan Card have signed a memorandum of understanding (MOU) to jointly explore blockchain-based payment and settlement infrastructure designed to link digital assets with conventional financial systems.

The planned collaboration centers on developing solutions for global payments, studying the role stablecoins could play in cross-border transactions, and assessing how digital asset services might be integrated into existing financial infrastructure. The agreement marks a step toward applying blockchain technology within established payment networks across the Asia-Pacific region.

Companies to Explore Digital Asset Payment Services

Under the MOU, SBI $XDC Network APAC and Shinhan Card intend to cooperate on expanding the $XDC Network ecosystem and investigating new payment services built on digital assets. SBI VC Trade, a cryptocurrency exchange, will participate in the broader initiative alongside the two companies.

The partners aim to determine how blockchain technology and digital assets can support global payments and settlements while remaining connected to traditional financial infrastructure.

The companies will assess potential use cases for digital assets in payment systems, including whether blockchain-based transactions could serve as practical alternatives or additions to existing payment processes. Their work is also expected to examine the technical and operational requirements involved in connecting digital asset services with established financial networks.

Agreements of this kind generally outline areas of cooperation without binding commercial commitments. The memorandum describes an exploratory collaboration rather than a confirmed commercial launch. The companies have not provided a timeline for introducing a finished payment product, disclosed investment commitments, or announced specific transaction targets.

Stablecoins Considered for Cross-Border Transactions

Stablecoins are expected to be one of the central areas of investigation. The three companies plan to study how these digital assets could be used to facilitate cross-border payments and how related services might interact with existing financial systems.

Stablecoins are designed to maintain a relatively stable value by referencing assets such as national currencies. Financial institutions have shown interest in their potential role in international payments because blockchain networks can support digital transfers across borders without relying exclusively on conventional payment infrastructure. Conventional cross-border transfers generally move through multi-step correspondent banking chains involving several intermediaries, a structure that payment providers worldwide have cited in examining blockchain-based settlement alternatives.

Integrating stablecoins into established financial systems, however, requires attention to transaction processing, technical compatibility, regulatory requirements, and the experience of customers using the services. The agreement indicates that the companies intend to examine possible approaches rather than confirming that a particular stablecoin or payment mechanism will be adopted.

The combination of a blockchain infrastructure provider and a crypto asset exchange could help the partners assess different parts of the digital asset payment process. Shinhan Card, one of South Korea's major credit card issuers, brings its position in South Korea's credit card sector to the collaboration, providing a potential connection between blockchain-based services and conventional consumer payments.

Yen-Denominated Stablecoins and In-Store Payments

Another area of focus is the possible use of digital assets, including yen-denominated stablecoins, for payments at physical retail locations. The companies plan to test how such services might operate in practice.

The planned assessments will cover the customer experience, transaction procedures, and technical requirements for using digital assets in in-store payment scenarios.

These evaluations could help determine how digital asset payments might be incorporated into retail environments and what changes would be needed to support transactions. The work may also clarify how blockchain-based payment services could connect with systems already used by merchants and financial service providers.

Any yen-denominated instrument would also operate within a regulatory framework that is still taking shape. Japan's revised Payment Services Act, in force since 2023, established licensing rules for fiat-backed stablecoins, limiting issuance to authorized entities and requiring the assets backing such tokens to be preserved. The reference to yen-denominated stablecoins suggests that the partners are considering use cases involving digital representations of traditional currencies. However, the agreement does not establish that a specific yen-backed token has been selected, nor does it confirm that consumers will soon be able to pay at stores using such assets.

Implementation Details Remain Undisclosed

The memorandum establishes a framework for cooperation, research, and testing, but important details remain unclear. The companies have not announced launch dates, participating merchants, supported blockchain networks beyond the stated ecosystem focus, or the regulatory arrangements that would govern any eventual service.

The next stage will depend on whether the partners can demonstrate that digital asset payments can operate effectively alongside existing financial systems and meet practical user and technical requirements. Published findings from the planned studies, any pilot or merchant testing, and steps toward regulatory approval would indicate whether the initiative advances beyond research.

The collaboration reflects continued interest among established financial and payment companies in examining blockchain technology for applications beyond cryptocurrency trading. Its eventual impact will depend on the results of the planned studies and tests, as well as the partners' decisions on whether to move from exploration to commercial deployment.

Source: CoinTrust