LiteBIRD is the Cosmic Microwave Background (CMB) radiation polarization satellite mission led by ISAS/JAXA. The main scientific goal is to search for primordial gravitational wave signals generated from the inflation epoch of the Universe. LiteBIRD telescopes employ polarization modulation units (PMU) using continuously rotating half-wave plates (HWP). The PMU is a crucial component to reach unprecedented sensitivity by mitigating systematic effects, including 1/f noise. We have developed a 1/10 scale prototype PMU of the LiteBIRD LFT, which has a 5-layer achromatic HWP and a diameter of 50 mm, spanning the observational frequency range of 34-161 GHz. The HWP is mounted on a superconducting magnetic bearing (SMB) as a rotor and levitated by a high-Temperature superconductor as a stator. In this study, the entire PMU system is cooled down to 10 K in the cryostat chamber by a 4-K Gifford-McMahon (GM) cooler. We propagate an incident coherent millimeter-wave polarized signal throughout the rotating HWP and detect the modulated signal. We study the modulated optical signal and any rotational synchronous signals from the rotation mechanism. We describe the testbed system and the preliminary data acquired from this setup. This testbed is built to integrate the broadband HWP PMU and evaluate the potential systematic effects in the optical data. This way, we can plan with a full-scale model, which takes a long time for preparation and testing.