Digital asset infrastructure firm Suho IO will work with Sh Suhyup Bank to verify international remittance and settlement technology using commercial bank deposit tokens. It will run a proof of the foreign exchange remittance process based on the global multi-currency settlement network Partior, and also seek to expand participation by domestic financial institutions later.

Suho IO said on Tuesday it will proceed with Phase 2 of Project Namsan with Suhyup Bank. The project is at the proof-of-concept stage rather than a commercial service launch, and multiple domestic financial institutions besides Suhyup Bank are in talks to participate.

Project Namsan is a programme in which Suho IO verifies digital asset-based payment and settlement technology with domestic and overseas financial and technology companies. After Phase 1, which covered domestic payment and settlement, it has expanded its scope this time to cross-border remittance and settlement using deposit tokens.

Partior is an interbank settlement network that uses tokenised deposits, and currently supports settlement in U.S. dollars (USD), euros (EUR) and Singapore dollars (SGD).

In the proof of concept, participating financial institutions will directly carry out procedures from payment initiation to settlement confirmation, and will also check handling processes for exceptional situations as well as normal transactions. However, the Korean won (KRW) is not yet commercially live on Partior, so a won-based remittance service will not be provided immediately.

Suho IO plans to use the results to explore the possibility of verifying deposit token-based foreign exchange remittance by domestic banks and a settlement system that includes the won leg.

Suho IO CEO Park Ji-su (박지수) explained, "The purpose of this programme is to enable domestic financial institutions to experience this rail first and prepare."

Partior CEO Humphrey Valenbreder said, "This PoC provides Suhyup Bank an opportunity to directly experience 24/7 deposit token settlement on Partior's infrastructure, which is settling real commercial transactions in the USD, EUR and SGD currencies."