Sh Suhyup Bank has confirmed the technical feasibility of implementing installment savings, loans and overseas remittance services using stablecoins. The bank tested whether stablecoins could be applied to major banking operations beyond existing payments and transfers, as a preliminary validation step for developing related products.

Suhyup Bank said on Monday it has completed a proof-of-concept (PoC) for stablecoin-based financial services conducted jointly with fintech security firm Aton.

In the test, it tried out deposit transaction processes using stablecoins, including signing up for an installment savings product, making additional payments and cancelling before maturity.

In the lending area, it implemented a structure for borrowing funds with stablecoins as collateral and confirmed the procedures from application and disbursement to repayment and collateral liquidation could be handled technically.

It also conducted verification on cross-border fund transfers. It tested a process of converting a won stablecoin into a dollar-based stablecoin and then sending it to an overseas digital wallet.

Suhyup Bank explained that in the PoC it implemented processing steps from stablecoin issuance through to payment. Based on this, it plans to examine the feasibility of developing financial products combining existing banking operations with digital asset technology.

Shin Hak-gi (신학기), head of Suhyup Bank, said, "Through this proof-of-concept, we have confirmed the infinite potential applications of a won stablecoin." He said, "We will continue our efforts to provide an innovative financial experience using digital asset technology."