Japanese financial powerhouse SBI Group, through its Canton Network-focused entity SBI Digital Practice (SBIDP), has signed a memorandum of understanding with South Korean digital asset software provider Nodeinfra to build a stablecoin-based cross-border payment network. Dubbed Project Musubi, the joint initiative aims to overhaul traditional foreign exchange mechanisms between South Korea and Japan. The partnership was announced on August 7, with both companies targeting to establish a new standard for cross-border payment infrastructure by integrating SBI Group's financial network with on-chain infrastructure. Currently, cross-border settlements between the two Asian nations rely on converting Japanese Yen (JPY) into U.S. Dollars (USD) before converting them back into Korean Won (KRW), which adds transaction costs, extends processing times, and exposes market participants to foreign exchange volatility.
SBI Group has significantly accelerated its regional expansion strategy with the consolidation of Singapore-based Coinhako, marking a major milestone in building Asia's first cross-border digital asset empire. This strategic acquisition forms part of SBI's rapid regional expansion that includes a tokenization partnership with Ondo Finance. The move positions SBI to leverage Coinhako's established presence in the Singapore digital asset market while expanding its own regional footprint. The partnership with Nodeinfra now operates within this broader regional expansion framework, with both companies targeting to establish a new standard for cross-border payment infrastructure by integrating SBI Group's financial network with on-chain infrastructure.
The project is currently in the Proof-of-Concept (PoC) stage, utilizing yen-denominated and won-denominated test tokens rather than live commercial stablecoins. The project will employ atomic payment-versus-payment settlement, distributed peer netting, and member self-governance architecture. SBI Digital Practice will build integration layers connecting existing financial systems to the network and leverage SBI Group relationships for Japanese onboarding. Nodeinfra will develop the core settlement protocol, Daml smart contracts, and developer tools while supporting Korean financial institutions and custodians. Because current regulatory frameworks require customer-facing stablecoin operations to be handled exclusively by licensed VASPs, the initial network phase will focus on interconnecting Korean and Japanese VASPs, with both companies planning to expand the network's scope as regulations evolve or traditional financial institutions acquire VASP licenses.
SBI's Japanese infrastructure is more advanced, having launched JPYSC through SBI Shinsei Trust Bank in June, which SBI describes as Japan's first trust-type yen stablecoin. According to the announcement, SBI VC Trade handled primary distribution of JPYSC on June 24. However, the Musubi announcement does not specify whether JPYSC will be used during the initial test phase. South Korea is developing legislation for won-denominated digital assets under a broader Digital Asset Basic Act, with policymakers working toward rules covering issuance and circulation, though key provisions remain under negotiation.
The partners plan eventual expansion beyond the Japan-Korea corridor into additional currencies, jurisdictions, and asset classes. As reported by SBI, regulated stablecoins would be adopted as respective Japanese and Korean frameworks allow. The ultimate goal is to scale Project Musubi into a multi-currency, multi-national cross-border payment standard. Ryo Shimotsu, CEO of SBI Digital Practice, stated that the company aims to establish a new standard for cross-border payment infrastructure between South Korea and Japan by integrating SBI Group's financial network with on-chain infrastructure. Nodeinfra CEO Youngseok Yang added that the company will leverage its Canton smart contract capabilities to deliver a secure, reliable settlement framework. The next concrete milestones will depend on regulatory progress in both countries and successful completion of the current testing phase.
