Shinhan Financial Group has signed a strategic memorandum of understanding with Visa to test stablecoin-based payment functions in South Korea, according to a report by The Block on Aug. 26. The planned work covers issuance, transfers, and redemptions, and will use Visa’s stablecoin platform to verify how those processes operate in practice.
The agreement was signed at Shinhan Financial’s headquarters in Seoul. Beyond testing core stablecoin flows, the two companies also plan to design a business model tailored to South Korea’s domestic financial environment. The cooperation extends to integrating stablecoins into credit card payment settlements, exploring AI-based future payment models, and expanding both B2B and B2C payment services.
Key details have not been disclosed. The report said the parties have not revealed which stablecoin will be used, how large the pilot will be, or when testing will begin. The move comes as South Korea broadens its digital asset push. The Ministry of Economy and Finance is planning to introduce a tokenization system in Sejong City in the fourth quarter of 2026, pointing to a wider effort by both public and private sector players to bring digital assets into the existing financial system.
Shinhan Financial Group has moved stablecoins into active testing. According to The Block’s Aug. 26 report, the South Korean financial group signed a strategic memorandum of understanding with Visa to test stablecoin-based payment functions in South Korea, covering issuance, transfers, and redemptions.
Visa platform to be used for issuance, transfer, and redemption checks
The report said the MOU was signed at Shinhan Financial’s headquarters in Seoul. Under the arrangement, Shinhan will use Visa’s stablecoin platform to verify issuance, remittance, and redemption processes, while the two sides work on a business model built for South Korea’s domestic financial environment.
The cooperation also covers integrating stablecoins into credit card payment settlements, developing AI-based payment models for future use, and expanding both B2B and B2C payment businesses.
Pilot details remain undisclosed
Neither side has disclosed which stablecoin will be used, how large the pilot will be, or when the testing will start.
Broader digital asset push in South Korea
The partnership comes as South Korea steps up its digital asset plans. The country’s Ministry of Economy and Finance is preparing to introduce a tokenization system in Sejong City in the fourth quarter of 2026, a sign that both public and private sector institutions are moving to bring digital assets into the existing financial system.
With a major financial group and a global card network now testing stablecoin issuance and settlement together, South Korea’s effort to put stablecoins into practical use has moved ahead again.
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