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South Korean banking institute Shinhan Bank has completed a proof-of-concept (PoC) pilot stablecoin remittance on the proof-of-stake Hedera blockchain in partnership with SCB TechX, the tech subsidiary of the Thai bank Siam Commercial Bank, and a major Taiwanese financial company.
Shinhan Bank Completes Stablecoin Remittance PoC Pilot
The stablecoin remittance PoC program is designed to make cross-border transactions cheaper and faster. Using stablecoins for the pilot program, the South Korean bank and its partners created a real-time settlement and real-time foreign exchange rate integration that cuts across three fiat currencies: the Thai Baht (THB), New Taiwan dollar (NTD), and South Korean won (KRW).
The PoC is compatible with the Ethereum Virtual Machine (EVM). This allows EVM-based stablecoin issuers to join the stablecoin international remittance program using the established framework.
Notably, Shinhan Bank has been exploring the concept of stablecoin international remittances as far back as 2021. The financial institution joined forces with Standard Bank in its quest for efficient and cheap cross-border payment systems.
Commenting on the latest achievement, Shinhan Bank’s Chief of Blockchain Division Byunghee Kim said:
“Stablecoins offer a low-cost, fast, and reliable way to transfer value across borders, which can help to increase financial inclusion and improve access to financial services for individuals and businesses in underserved communities. With this next phase of PoC, we are pleased to have demonstrated how the use of Hedera’s EVM-compatible technology helps eliminate intermediaries, reduce costs, and speed up the remittance process.”
TradFi Companies Embrace Blockchain
Like Shinhan Bank, several companies in the traditional finance industry are actively looking at blockchain-based products to bring real-world benefits. For example, global financial firm HSBC forged a partnership with blockchain company Sandbox in March 2022 to delve into the metaverse, trailing its long history with other blockchain services.
Multinational investment company Goldman Sachs is another example. The firm has a notable history with digital assets such as Bitcoin.
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