SBI Digital Practice and Nodeinfra Partner to Launch Cross-Border Stablecoin Payment Network Connecting Japan and South Korea
Japanese financial powerhouse SBI Group, through its Canton Network-focused entity SBI Digital Practice (SBIDP), has signed a Memorandum of Understanding with South Korean digital asset software provider Nodeinfra to build a stablecoin-based cross-border payment network.
Dubbed Project Musubi, the joint initiative aims to overhaul traditional foreign exchange mechanisms between South Korea and Japan. Currently, cross-border settlements between the two Asian nations rely on converting Japanese Yen (JPY) into U.S. Dollars (USD) before converting them back into Korean Won (KRW). This multi-tier FX process adds transaction costs, extends processing times, and exposes market participants to foreign exchange volatility.
Key Project Architecture & Mechanics
- Direct Fiat-to-Fiat Exchange: Project Musubi eliminates the intermediary U.S. Dollar conversion by enabling direct swaps between JPY-denominated stablecoins and KRW-denominated stablecoins.
- Market Maker Liquidity: In practice, a Japanese Virtual Asset Service Provider (VASP) transfers JPY stablecoins, which an intermediary market maker instantly converts to KRW stablecoins before settling with the recipient Korean VASP.
- Atomic Settlement (PvP): The network incorporates Payment versus Payment (PvP) atomic settlement within a single Canton transaction. This ensures simultaneous execution of transfers and exchanges, mitigating partial settlement risk and protecting transaction privacy from third parties.
Regulatory Roadmap and Future Expansion
The project is currently in the Proof-of-Concept (PoC) stage. Because current regulatory frameworks require customer-facing stablecoin operations to be handled exclusively by licensed VASPs, the initial network phase will focus on interconnecting Korean and Japanese VASPs.
However, both companies plan to expand the network's scope as regulations evolve or traditional financial institutions acquire VASP licenses. The ultimate goal is to scale Project Musubi into a multi-currency, multi-national cross-border payment standard.
"We aim to establish a new standard for cross-border payment infrastructure between South Korea and Japan by integrating SBI Group’s financial network with on-chain infrastructure," stated Ryo Shimotsu, CEO of SBI Digital Practice.
Nodeinfra CEO Youngseok Yang added that the company will leverage its Canton smart contract capabilities to deliver a secure, reliable settlement framework.
Norbert Gehrke
