Japan's SBI, Kyobo Life Verify JPY/KRW Stablecoin Remittance..."Direct Transactions Bypassing the Dollar"

▲ JPY (Japanese Yen), KRW (Korean Won)/AI Generated Image

A remittance demonstration between South Korean and Japanese financial institutions, directly exchanging JPY and KRW stablecoins without involving the US dollar, has been completed.

According to cryptocurrency media outlet Coingape on September 17 (local time), Japan's SBI Group, a Ripple partner, and Kyobo Life have successfully completed the technical verification of stablecoin remittances between the two countries. This demonstration, which began in July, utilized the Canton Network as a test environment.

The key is eliminating the exchange process that involves the US dollar as an intermediate currency. Previously, converting JPY to USD and then back to KRW increased time and transaction costs. The two companies verified the process of directly exchanging JPY-pegged stablecoins for KRW-pegged stablecoins using test tokens.

The two companies expect that the direct exchange method will reduce the time and cost involved in inter-institutional international remittances and lower exchange rate risks. They also verified an operational method for safely processing digital assets transferred from overseas and related settlement funds domestically. This achievement is a technical verification stage utilizing test tokens.

Ripple has been collaborating with SBI Group since 2016 and recently partnered for the launch of the USD-pegged stablecoin RLUSD in Japan. With Kyobo Life, Ripple announced a collaboration to test tokenized payments for South Korean government bonds using Ripple's digital asset custody services and to explore stablecoin payment networks.

Following this demonstration, SBI Group and Kyobo Life plan to expand their collaboration in the Web3 sector. The collaboration targets include South Korean and Japanese digital asset exchanges, asset management, and new business models utilizing transaction structures.

[Article Summary]

-Ripple partners SBI Group and Kyobo Life verified the direct exchange of JPY and KRW stablecoins without involving the US dollar.

-Utilizing test tokens on the Canton Network, both companies expect reduced remittance time, cost, and exchange rate risk.

-The two companies plan to expand cooperation into South Korean and Japanese digital asset exchanges, asset management, and new business models.

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