South Korea's Shinhan Card is working with SBI VC Trade and SBI XDC Network APAC, part of Japan's SBI group, to explore payments with yen-backed stablecoins. The programme covers card-linked merchant payments for Japanese visitors, wallet-to-wallet transfers and settlement of trade payments. Systems for detecting suspicious transactions and meeting anti-money laundering rules will also be tested. The project is at an early stage, with no stablecoin chosen and no timeline.

What it means: Japan and South Korea have very large tourist and trade flows between them, which makes them a natural testing ground for payments in local currencies without a double conversion through the dollar. The interesting element is that the stablecoin is linked to a card, so the merchant does not need to change anything at the terminal while the tourist pays from a digital wallet. This is, however, an early exploration: SBI's yen stablecoin cannot yet be moved outside its platform, and its use on public blockchains depends on regulatory approval. The move shows Asian banks heading toward stablecoins in their own currencies, not just the dominant dollar ones. For Europe, the example is relevant to the debate on euro stablecoins and the digital euro, which also promise cheaper cross-border payments. For Greek tourism businesses, card payments will remain the main tool, but it is worth watching whether POS providers start offering such options for visitors from outside the euro area. What will matter is the total cost for the merchant.

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