SBI, Nodeinfra plan 2-currency stablecoin network on Canton

SBI Digital Practice and South Korea's Nodeinfra signed an MOU on Aug. 7 to develop Project Musubi, a cross-border payment network between Japan and South Korea on Canton, starting with yen and won test tokens before regulated stablecoins.

Ryo Shimotsu, representative director of SBI Digital Practice, said the group intends to connect Musubi with SBI's wider onchain infrastructure, aiming to "set a new standard" for Japan-Korea payment infrastructure.

The initial phase will use yen-denominated and won-denominated test tokens rather than live commercial stablecoins, according to SBI's release. The project's planned architecture includes atomic payment-versus-payment settlement, distributed peer netting and member self-governance. Atomic settlement is designed to make both sides of a transaction complete together, reducing the risk that one party delivers funds while the other side fails. SBI Digital Practice will build integration layers connecting existing financial systems to the network, while Nodeinfra will develop the core settlement protocol, Daml smart contracts and developer tools.

The project addresses the current use of the U.S. dollar as an intermediary in some Japan-Korea settlements, which SBI said creates additional friction and settlement risk. Sequential settlement through a dollar vehicle can add time and counterparty exposure to each transaction. The partners plan eventual expansion beyond Japan and South Korea into additional currencies, jurisdictions and asset classes, though no commercial launch date has been provided.

SBI's yen token already in circulation

SBI's Japanese infrastructure is further along. The group launched JPYSC through SBI Shinsei Trust Bank in June, describing it as Japan's first trust-type yen stablecoin. SBI put JPYSC into circulation on June 24, with SBI VC Trade handling primary distribution. The Musubi announcement does not say JPYSC will be used during the initial test phase.

SBI Digital Practice itself is new. SBI renamed SBI Security Solutions in June and shifted its focus toward institutional onchain finance, restructuring the subsidiary around Canton Network infrastructure spanning countries and currencies. The Canton Network is a blockchain platform designed for regulated financial institutions, offering privacy controls and interoperability that public blockchains typically lack. SBI's broader digital asset strategy also includes a significant stake in Ripple, which the group valued at $41.2 billion despite XRP's price slump.

South Korea's regulatory timetable remains a key dependency

South Korea is developing legislation for won-denominated digital assets under a broader Digital Asset Basic Act. Policymakers are working toward rules covering issuance and circulation, but key provisions remain under negotiation. That helps explain why Project Musubi begins with test tokens. SBI's announcement says regulated stablecoins would be adopted as the respective Japanese and Korean frameworks allow. It does not identify a won stablecoin issuer or provide a date for moving from testing into production.

The immediate work centers on technical development and institutional onboarding. SBI Digital Practice will focus on connecting Japanese financial infrastructure, while Nodeinfra will lead protocol and smart contract development and help onboard Korean institutions. The next concrete milestones will be completion of testing, participation by regulated institutions and sufficient regulatory clarity to introduce commercial stablecoins.

This article is for informational purposes only and does not constitute investment advice.