KoBo Life and SBI Successfully Test Direct Yen-KRW Stablecoin Exchange

KoBo Life and Japan’s SBI Group have successfully verified a system allowing direct conversion between Yen and KRW stablecoins without using the US dollar as an intermediary, enabling efficient cross-border transfer of institutional funds from Japan to South Korea.

The project, named ‘Korea-Japan Stablecoin-Based Cross-Border Proof-of-Concept,’ concluded on July 17 after being conducted since July with SBI Digital Practice, a subsidiary of SBI Group. The test utilized the Canton Network blockchain platform’s testing environment to validate cross-border fund transfers, currency exchange, and settlement processes between institutions.

KoBo Life noted that this marks the first time a domestic insurance company has verified the entire process of international institutional fund transfer using such a system. The key innovation lies in eliminating the need for USD as an intermediary currency, which traditionally involves converting Yen to USD before converting to KRW—adding steps, time, cost, and exchange rate risk.

The test used tokenized assets to verify direct conversion from Yen stablecoins to KRW stablecoins. Actual stablecoins or institutional funds were not transferred; the focus was on confirming technical feasibility within a testing environment.

Both parties confirmed potential for reducing processing time in blockchain-based cross-border fund transfers and simplifying intermediary exchange procedures. They also tested real-time tracking of transaction data and settlement handling for digital assets transferred overseas, processed domestically.

KoBo Life believes that once the necessary regulations and financial infrastructure are established, this verified structure can enhance efficiency and transparency in international finance. Further collaboration between the two entities will explore additional business models in Web3 finance, including stablecoin-based cross-border asset exchange and fund management integration.