Table of Contents
- 1. Japan Moves on Tokenized Deposits and Central Bank Settlement at the Same Time
- 2. Hong Kong Opens HKDAP Distribution and Connects It to Tokenized Fund Settlement
- 3. Korea Narrows Its Stablecoin Payment Model Through Partnerships with Visa
- 4. Other News
- 4.1 Theme 1. Tokenized Assets Expand into Funds and Real World Assets
- 4.2 Theme 2. Stablecoin Payments Move Across Borders and Beyond Business Days
- 4.3 Theme 3. Regulation Splinters into Taxation, Foreign Exchange, and Licensing
Japan’s interbank remittance pilot with tokenized deposits leads this week’s ASA News, alongside Hong Kong’s first bank agency for HKDAP distribution and Korea’s stablecoin payment partnerships with Visa.
1. Japan Moves on Tokenized Deposits and Central Bank Settlement at the Same Time
Source: Around 40 Banks Across Japan to Launch Interbank Remittance Pilot Using Tokenized Deposits
Key Update
- Around 40 banks across Japan will begin an interbank remittance pilot using tokenized deposits, led by GMO Aozora Net Bank with DeCurret DCP and ABeam Consulting, with Resona Bank, The Shoko Chukin Bank, and The Bank of Yokohama participating as observers.
- The pilot targets low cost, instant settlement infrastructure available 24 hours a day, 365 days a year without going through the Zengin System, and tests two approaches in parallel, one directly linking interbank deposit accounts and one using stablecoins.
- Japan’s Financial Services Agency, Ministry of Finance, Bank of Japan, and financial institutions are also reviewing a blockchain concept for 24/7 instant settlement of stocks and government bonds that would tokenize a portion of current account deposits at the Bank of Japan.
Commentary: A Settlement Layer Beyond the Zengin System
The defining feature of the pilot is that remittances will run without passing through the Zengin System, which gives tokenized deposits the role of settlement infrastructure for the banking sector. Testing direct linkage of deposit accounts and stablecoins in parallel gives banks a side by side comparison of the two forms of digital money on cost, speed, and control, and the review of tokenizing current account deposits at the Bank of Japan shows private pilots and public settlement plans moving at the same time.
The sequence differs across the region, since Korea discusses the Digital Asset Basic Act, won stablecoins, and foreign exchange reporting separately while Hong Kong circulates regulated stablecoins first and Singapore accumulates live transaction experience through DBS and UOB.
Japan brings many banks and public institutions to the table at once and starts from the settlement infrastructure itself. If the pilot reaches actual operations, low cost remittance available at all hours becomes the baseline for yen payments, and each bank will need to decide how its deposit products and corporate payment services connect to that layer.
2. Hong Kong Opens HKDAP Distribution and Connects It to Tokenized Fund Settlement
Source: Major UK Bank Standard Chartered Takes First Bank Agency Role for Hong Kong Dollar Stablecoin HKDAP
Key Update
- Standard Chartered Hong Kong announced on August 24 that it will serve as the first bank distribution agent for HKDAP, the regulated Hong Kong dollar stablecoin issued by Anchorpoint, and the number of approved distributors has increased to five.
- Initial use cases include subscriptions and settlement for tokenized money market funds, intragroup treasury and liquidity management, and cross border payments.
- HSBC is reportedly preparing distribution targeting users of its own mobile app, so the Hong Kong dollar stablecoin market is splitting into institutional models and app linked models soon after the first issuer approvals.
Commentary: HongKong Stablecoin Distribution Begins
With issuance approval secured, Hong Kong’s question has shifted to how distribution should be designed, and HKDAP is narrowing its use cases around banks, licensed distributors, tokenized money market fund settlement, and cross border payments. When a bank such as Standard Chartered acts as an distributor, trust in the stablecoin combines the issuer’s reserves with the bank’s customer due diligence, sales, settlement, and treasury systems, which absorbs stablecoins into the existing banking system.
Mirae Asset’s tokenized ETF unit class shows Hong Kong opening stablecoin distribution networks and tokenized fund products almost simultaneously. If HKDAP is repeatedly used for tokenized money market fund subscriptions and settlement, the Hong Kong dollar stablecoin could grow into part of Hong Kong’s asset management infrastructure.
3. Korea Narrows Its Stablecoin Payment Model Through Partnerships with Visa
Source: Shinhan Financial Group and Visa to Test Stablecoin Payment Model
Key Update
- Shinhan Financial Group signed a strategic memorandum of understanding with Visa on August 26 to jointly test stablecoin based financial services and AI payment models, covering issuance, remittance, and redemption on Visa’s stablecoin platform.
- The cooperation extends to real financial services such as card payment settlement, and the two companies plan to design a Korean business model suited to the domestic financial environment.
- Dunamu entered a strategic partnership with Visa in the same week to develop stablecoin based payments, global remittances, and AI based financial and payment services, and the two companies are reportedly reviewing the use of OUSD.
Commentary: Settlement Use Cases Come Before Issuer Rules in Korea
Shinhan Financial Group and Dunamu both attached stablecoin functions to existing operations such as card payment settlement and global remittances, so Korea’s first use cases are likely to appear in settlement cost reduction for banks and exchanges before mass market payment apps. With the Digital Asset Basic Act still under discussion, use case validation is moving ahead of issuer rules on infrastructure operated by Visa, which leaves core payment rails dependent on external networks for now.
DAXA’s foreign exchange reporting briefing adds a regulatory counterweight, since cross border transfers will fall under advance registration and Bank of Korea reporting obligations from December 3. As the Visa pilots scale, discussions on foreign exchange management, anti money laundering, and issuer legislation are likely to follow together, and the key issue is how these pilots are absorbed into won stablecoin legislation.
4. Other News
This section summarizes other news from the period related to Asian stablecoins, tokenization, payments, and digital asset infrastructure.
4.1 Theme 1. Tokenized Assets Expand into Funds and Real World Assets
- Hanwha Investment & Securities is preparing a domestic security token business and an overseas real asset backed tokenized asset business at the same time, expanding securities firms’ issuance and brokerage functions into digital products.
4.1.2 CIMB Settles $342 Million Sukuk with Tokenized Deposits
- CIMB Islamic Bank settled around $342 million of a RM1.68 billion sukuk issuance with tokenized deposits, the first case in Malaysia combining tokenized deposits and Islamic bonds.
4.1.3 HashKey Offers Franklin Templeton Tokenized Fund in Asia
- HashKey Exchange is offering Franklin Templeton’s tokenized money market fund grBENJI to professional investors in Hong Kong, positioning the city as an Asian distribution gateway for global tokenized funds.
4.1.4 Hyeon-Joo Park Outlines Gold Coin Vision Worth KRW 20 Trillion to 30 Trillion
- Mirae Asset Group presented a vision linking RWA, security tokens, and stablecoins around Digital X, mentioning tokenization of large cap stocks such as Samsung Electronics and SK Hynix as well as gold and electricity backed coins.
4.2 Theme 2. Stablecoin Payments Move Across Borders and Beyond Business Days
4.2.1 DBS Processes S$10 Billion in Tokenized Payments Over Two Years
- DBS processed around S$10 billion in tokenized payments over the past two years, showing that Singapore’s banking sector is moving from experimentation to operational scale.
4.2.2 UOB Completes Live Tokenized Deposit Transaction with HSBC on Swift Ledger
- UOB and HSBC completed a cross border Hong Kong dollar transaction using tokenized deposits on the Swift ledger, making UOB the first Singapore headquartered bank to conduct a live transaction on a blockchain based ledger.
4.2.3 Visa and Nium Test Seven-Day Stablecoin Settlement Under MAS BLOOM
- Visa and Nium tested seven day settlement through the Monetary Authority of Singapore’s BLOOM initiative, bringing stablecoin payment models that reduce business day constraints into policy experimentation.
4.2.4 Osaka Prefecture Supports Three JPYC and USDC Payment Pilots
- Osaka Prefecture will provide a total of JPY 28.89 million in subsidies to four financial pilot projects, three of which test payments at stores and payment terminals using JPYC and USDC.
4.3 Theme 3. Regulation Splinters into Taxation, Foreign Exchange, and Licensing
4.3.1 Pakistan Builds Virtual Asset Regulatory Framework with $200,000
- Pakistan is building a virtual asset regulatory framework with $200,000, around 8% of its approved budget, starting with a licensing framework covering exchanges, custody, brokerage, asset management, lending, and payments.
- The Financial Services Agency plans to include eased procedures for high value trust type yen stablecoin transactions in its tax reform request, which could expand yen stablecoin use to high value payments such as automobiles and real estate from fiscal 2027.
4.3.3 Korea Debates Tax Blind Spot for Stablecoin Gains
- Ahead of digital asset taxation taking effect on January 1, 2027, a fairness debate is emerging because dollar foreign exchange gains are tax exempt while stablecoin gains may be taxable.
4.3.4 DAXA Holds Briefing on Dedicated Foreign Exchange Reporting Network for VASPs
- From December 3, cross border digital asset transfer businesses will be subject to advance registration and Bank of Korea reporting obligations, the first step in bringing stablecoin remittances and exchange transfers into the foreign exchange management system.
[ASA News] is a weekly newsletter that summarizes major stablecoin related news across Asia and shares views from industry participants. (2026.08.24~08.30)
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