Suhyup joins first Korean test of tokenised FX settlement

SOOHO.IO and Suhyup Bank have launched a foreign exchange remittance proof of concept on Partior's settlement network, marking the first participation by a Korean bank in Project Namsan Phase 2.

Under the programme, Suhyup Bank's foreign exchange and overseas remittance teams will run cross-border payments across Partior's live tokenised deposit network from payment initiation to final settlement. Several other Korean financial institutions are in talks to join.

Project Namsan is a SOOHO.IO initiative with financial and technology groups in Korea and overseas to test digital asset payment and settlement systems. The first phase focused on domestic payments and settlement. The second expands the work to cross-border remittance and settlement using tokenised deposits.

Participants will use a live international settlement rail rather than a simulated environment or paper-based review. They will test standard transaction flows as well as operational exceptions that could arise in day-to-day processing.

Tokenised deposits

A tokenised deposit is a commercial bank deposit represented on a blockchain. In this model, the bank deposit itself serves as the settlement asset rather than a separately issued stablecoin.

This structure preserves the banking system's credit framework while allowing round-the-clock settlement. The approach has become part of broader discussions in financial markets about new cross-border payment infrastructure.

Partior's network is live in US dollars, euros and Singapore dollars, using tokenised commercial bank deposits for settlement. It is also built on ISO 20022, the financial messaging standard used by banks, allowing it to fit existing foreign exchange operations.

The initiative comes as policy and industry discussion around tokenised deposits gathers pace in South Korea. The Bank of Korea's Project Hangang has entered a second phase, although domestic efforts have focused on small-value payments rather than international interbank settlement.

That difference in scope is one reason the project is drawing attention from banks exploring cross-border payment models. By testing Partior's framework directly, Korean institutions can build internal evidence on how tokenised deposit settlement works in practice and how it might fit future rule changes.

If the validation is successful, the project could provide a basis for further testing of foreign exchange remittances between Korean banks using tokenised deposits. That could eventually include settlement flows with a won leg under conditions closer to live use, although the Korean currency is not currently active on Partior.

First Korean bank

Suhyup Bank is the first bank to take part in the programme's second phase. Its involvement gives the project an initial institutional user as SOOHO.IO and Partior seek broader participation from the Korean financial sector.

Founded in 2019, SOOHO.IO provides financial infrastructure based on blockchain security technology. Its platform includes transaction security, asset issuance and management, and payment functions covering remittance, foreign exchange and settlement using stablecoins and deposit tokens.

Partior operates a multi-bank settlement network backed by financial institutions and investors including DBS Bank, J.P. Morgan, Standard Chartered, Temasek, Peak XV, Valor Capital, Deutsche Bank and Emirates NBD. It focuses on the cross-border movement of digital money between banks.

"Tokenised deposits have moved past the discussion stage around the world, which is why we're starting this work in Korea," said Jisu Park, Chief Executive Officer of SOOHO.IO. "Our aim is to let Korean financial institutions experience this rail first and prepare for it. We hope it becomes a practical starting point for connecting Korean finance to the global financial network."

"We are super excited to work with Suhyup Bank and SOOHO.IO on Project Namsan Phase 2," said Humphrey Valenbreder, Chief Executive Officer of Partior. "This proof of concept gives Suhyup Bank the opportunity to validate 24/7 tokenised deposit settlement on infrastructure that already settles live commercial volumes across USD, EUR and SGD. It builds on our partnership with SOOHO.IO to connect Korean institutions to global settlement rails, and on our commitment to an interoperable ecosystem that lowers barriers to entry across markets."