A new blueprint for moving money between Tokyo and Seoul is taking shape, and it starts with something surprisingly modest: test tokens with no real value attached. SBI Group and Korean blockchain infrastructure firm Nodeinfra have signed a memorandum of understanding to build a cross-border payment network linking Japanese and Korean financial institutions, and the early phase of this SBI Korea Japan stablecoin initiative will rely on experimental yen and won tokens rather than commercial stablecoins. The project, called Project Musubi, is designed to eventually settle real payments, but for now it’s confined to a testing sandbox while regulators in both countries catch up.
Summary
Key takeaways
- SBI and Nodeinfra will test yen and won payment tokens before rolling out regulated stablecoins commercially.
- Project Musubi runs on the Canton Network, using atomic payment-versus-payment settlement and distributed peer netting.
- SBI Digital Practice connects Japanese institutions; Nodeinfra builds settlement protocols and onboards Korean partners.
- Japan already has SBI’s JPYSC stablecoin, launched in June, while South Korea’s won stablecoin rules are still under negotiation.
- No commercial launch date, participating institutions, or won issuer has been named yet.
SBI and Nodeinfra Launch Cross-Border Stablecoin Network Testing
Before any regulated stablecoin changes hands between Japan and South Korea, engineers need to prove the plumbing works. That’s the logic behind starting Project Musubi with simulated currency rather than live money — a cautious first step that reflects how unsettled the regulatory picture still is in both markets.
Initial Use of Yen and Won Test Tokens
The initial testing phase will rely on a yen test token and a won test token, according to the companies. SBI and Nodeinfra have said they intend to shift toward fully regulated stablecoins once legal frameworks in Japan and South Korea permit it. Neither company has provided a commercial launch date or disclosed which banks, exchanges, or payment firms might eventually participate.
Technology Architecture Based on Canton Network
Project Musubi is still under development rather than functioning as a live payment service. Its planned architecture leans on the Canton Network to enable atomic payment-versus-payment settlement, distributed peer netting, and member self-governance. Atomic settlement matters because it’s built to make both legs of a cross-border transaction complete simultaneously, cutting the risk that one party sends funds while the other side fails to deliver.
Roles of SBI Digital Practice and Nodeinfra in Network Development
The two partners have split responsibilities along national lines, pairing SBI’s domestic reach in Japan with Nodeinfra’s technical build-out for the Korean side of the network.
Connecting Japanese Financial Institutions
SBI Digital Practice, the SBI Group subsidiary steering the project, will construct integration layers that link existing Japanese financial systems into the network. It plans to lean on SBI Group’s existing institutional relationships to support onboarding across Japan.
Developing Protocols and Tools for Korean Institutions
Nodeinfra, meanwhile, is tasked with building the core settlement protocol, along with Daml smart contracts and developer tools, while also supporting Korean financial institutions and custodians as they come on board. This division of labor mirrors a broader pattern in cross-border digital asset projects, where one partner supplies domestic distribution and the other supplies protocol engineering.
Existing Stablecoin Landscape and Regulatory Environment
Japan and South Korea are approaching regulated stablecoins from very different starting points, and that gap helps explain why Project Musubi is beginning with test tokens instead of production-ready currency.
Japan’s JPYSC Stablecoin Launch
SBI’s domestic infrastructure is considerably further along than Korea’s. 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. Notably, the Musubi announcement does not confirm whether JPYSC will actually be used during the initial cross-border test phase — that detail remains open.
SBI Digital Practice itself is a fairly recent creation. SBI renamed its subsidiary, formerly known as SBI Security Solutions, in June and refocused it on institutional onchain finance built around the Canton Network, spanning multiple countries and currencies.
South Korea’s Ongoing Stablecoin Legislation
Under the framework of a broader Digital Asset Basic Act, South Korea is crafting regulatory measures for won-denominated digital assets, and key provisions covering issuance and circulation remain under negotiation. This is the central regulatory dependency behind the entire project: without clear rules for a won stablecoin, Nodeinfra and its Korean partners have little choice but to test with a token that carries no legal or monetary weight yet.
Why this matters: the timeline for turning Project Musubi into a genuine payment corridor between the two economies hinges almost entirely on how quickly Korean lawmakers finalize that framework. Japan’s side of the network can move faster because JPYSC already exists in a regulated form, but a Japan-Korea settlement rail is only as fast as its slowest regulatory link.
Project Musubi’s Strategic Objectives and Future Expansion
Beyond the technical testing, SBI and Nodeinfra are framing this project as a long-term infrastructure bet rather than a one-off pilot.
Vision to Set New Standards for Japan-Korea Payments
Ryo Shimotsu, representative director of SBI Digital Practice, said the group intends to connect Musubi with SBI’s wider onchain infrastructure. According to Shimotsu, the companies aim to “set a new standard” for Japan-Korea payment infrastructure — a statement that describes an objective rather than an outcome already achieved. It signals how SBI views this network less as an isolated product and more as a foundation piece for onchain finance connecting the two markets.
Plans to Expand Beyond Japan and South Korea
The partners have said they The roadmap encompasses broadening Project Musubi across the Japan-Korea corridor to encompass supplementary currencies, regulatory zones, and different asset categories. That ambition remains a stated goal rather than a confirmed rollout, and no timeline has been attached to it. For now, the concrete milestones that will determine whether this cross-border stablecoin network moves forward are the completion of testing, participation from regulated institutions, and enough regulatory clarity in both countries to justify introducing commercial stablecoins.
The broader significance here is competitive as much as technical. Japan already has multiple stablecoin efforts underway — including JPYSC and a separately reported joint stablecoin project among Japan’s three megabanks — while South Korea’s institutions are still waiting on legislative groundwork. A working Japan-Korea settlement network would give SBI an early foothold in one of Asia’s first regulated cross-border stablecoin corridors, positioning the group ahead of rivals still confined to domestic markets.
FAQ
Why are SBI and Nodeinfra using test tokens instead of stablecoins initially?
They are using yen and won test tokens because of regulatory uncertainties and incomplete legal frameworks covering digital assets in both Japan and South Korea.
What technology underpins Project Musubi’s payment network?
Project Musubi runs on the Canton Network, which is designed to support atomic payment-versus-payment settlement and distributed peer netting between participants.
What is the role of SBI Digital Practice and Nodeinfra in the project?
SBI Digital Practice connects Japanese financial institutions to the network, while Nodeinfra develops the settlement protocol, smart contracts, and supports the onboarding of Korean institutions and custodians.
What are the future plans for Project Musubi beyond the initial Japan-Korea corridor?
The partners plan to expand the network to include additional currencies, jurisdictions, and asset classes once regulatory clarity improves in relevant markets, though no confirmed timeline exists yet.
Article produced with the assistance of artificial intelligence and reviewed by the editorial team.
