Japan’s SBI Digital Practice (SBI DP) has signed a memorandum of understanding with Korea’s Nodeinfra to build a cross border payment network between Japan and Korea using the Canton Network. Called Project Musubi, the initiative aims to use yen, won and dollar denominated stablecoins alongside tokenized assets, with payment versus payment settlement and distributed netting among participants.
Under the agreement, SBI DP, the SBI Holdings subsidiary dedicated to Canton Network projects, will develop the integration layer connecting traditional financial systems to the network and will support the participation of Japanese financial institutions. Nodeinfra will lead development of the core payment protocol, Daml smart contracts and developer tools, and will handle the onboarding of Korean financial institutions and custodians.
The project depends on stablecoins that do not yet circulate freely in either country. SBI launched its yen stablecoin JPYSC in June, but it remains confined to the SBI VC Trade platform pending regulatory and tax clarification. On the Korean side, stablecoin legislation was expected to be finalized earlier this year but has not yet materialized. Nonetheless, institutions in both markets are preparing. In Korea, the prospect of stablecoin regulation has spurred traditional institutions to invest in crypto exchanges.
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