Shinhan Bank Completes First-Phase Verification of Korea-Japan Stablecoin Remittance

Shinhan Bank announced on September 16 that it had successfully completed the first phase of technical verification for the Korea-Japan cross-border stablecoin remittance project, "Project PAX," during a briefing held in Tokyo, Japan, on September 10.

The technical verification involved Shinhan Bank, as well as Japanese lead companies Progmat and Datachain, and Korean participants Pair Square Lab, Korea Digital Asset Custody (KDAC), NH Nonghyup Bank, and K Bank.

Project PAX has adopted a "sandwich model," which applies stablecoins only to the cross-border fund transfer segment while maintaining the reliability and regulatory compliance of the existing banking network. This approach can significantly reduce both the speed and cost compared to the traditional method of using intermediary banks, making it effective for trade settlements and overseas remittances.

Shinhan Bank served as both the sending and receiving bank, verifying foreign exchange rate simulations, information management, and minimization of forex risk. Additionally, the bank demonstrated the effectiveness of an API integration structure that easily connects with existing systems.

In the second phase of technical verification, Shinhan Bank plans to implement SWIFT integration and introduce a Payment versus Payment (PvP) mechanism to ensure simultaneous settlement on both sides, while expanding the scope of real transaction applications. Through this, the bank aims to fundamentally eliminate the risk of one party making a payment while the other fails to fulfill their obligation in overseas remittances or trade settlements.

During the first phase of verification, Shinhan Bank also held separate meetings with major Japanese companies to discuss stablecoin cooperation. The discussions went beyond simple technical verification, sharing opinions on the potential for real business applications and preparations for effective services.

A Shinhan Bank representative stated, "Project PAX was a meaningful attempt to verify stablecoins as a practical international financial infrastructure while supplementing the existing financial network," adding, "We will continue preparations to play a leading role in Korea-Japan stablecoin remittance collaboration going forward."

Meanwhile, at the Japan Stablecoin Summit 2025 held on September 10, Shinhan Bank delivered a keynote speech and introduced a proof-of-concept case for Korea's deposit token project (the Hangang Project). At the event, participants discussed innovative cross-border remittance solutions that combine Korea's proof-of-concept experiences with Japan's stablecoin regulatory environment to deliver tangible benefits to customers.