KoBo Life and SBI Test Stablecoin-Based Cross-Border Institutional Fund Transfer Between Japan and South Korea

KoBo Life announced on the 17th that it has successfully verified, for the first time in the domestic insurance industry, an institutional fund transfer structure between South Korea and Japan using stablecoins in collaboration with Japan's SBI Group.

The two companies recently concluded their 'Korea-Japan Stablecoin-Based Cross-Border Proof of Concept Project,' which had been underway since July. The test utilized the Canton Network, a blockchain network designed for financial institutions.

During the trial, they tested a structure where yen-based stablecoins were directly exchanged into won-based stablecoins when transferring funds from Japan to South Korea. Previously, funds would need to be converted from yen to US dollars before being converted back to won, but this time they avoided using dollars as an intermediate currency.

By testing the structure with test tokens instead of actual funds, they confirmed that blockchain-based cross-border fund transfers could reduce processing times and lower costs by eliminating intermediate conversion steps. They also verified real-time tracking and verification of transaction information.

The two companies also validated an operational model for securely handling digital assets transferred from overseas and related settlement amounts within South Korea. Building on this, they plan to further link digital asset exchanges and asset management between South Korea and Japan in the future, develop new business models based on actual transaction structures, and continue cooperation in the Web3 finance sector.

A KoBo Life spokesperson stated, 'This proof of concept confirmed the technical feasibility and efficiency of using stablecoins and blockchain for cross-border institutional fund transfers,' adding that they will expand their collaboration with SBI Group to proactively respond to changes in Web3 financial infrastructure.