Shinhan Bank, South Korea’s second largest bank in terms of total assets, declared on Wednesday that it has signed a deal with telecom company KT to jointly form a blockchain-based solution. The new platform’s end goal is to benefit from the local governments’ recently reported intentions to launch digital vouchers. The vouchers can supplant cash out specific areas, and local governments expressed before in 2018 that they would acquaint digital vouchers to revive local economies across South Korea.
As indicated by the agreement, KT ought to develop a blockchain platform and network system while Shinhan Bank is in charge of building the important financial solutions like payments and account systems to be coordinated with the platform.
Jang Hyeon-ki, the Head of Shinhan’s digital strategy unit, commented that Shinhan’s strategic partnership with KT is a part of our endeavors to present a convergence between finance and ICT. The blockchain technology will overhaul clients’ financial activities to another level.
Seoul-based Shinhan is the first Korean bank to show awareness on the capability of the digital ledger technology (DLT), another name for blockchain. The bank set up a research center concentrated on blockchain under its Digital Strategy Department. Shinhan is utilizing the technology to build up an integrated certification system related to financial operations like online wire exchanges and Forex.
Talking about the association with Shinhan Bank, Kim Hak-Joon, director of KT Platform Service, stated:
“The association with Shinhan Bank will be a chance to extend the limits of KT’s blockchain technology into the financial sector. KT will keep doing its best in contributing to the country’s blockchain industry.”
As reported by Cryptovest, Shinhan Bank, the main subsidiary of Shinhan Financial Group, is the oldest bank in South Korea, established in 1897 as Hanseong Bank. A year ago, the bank began the development of its BTC wallet and vault system. In February of the current year, Shinhan completed blockchain tests in a joint effort with Ripple Labs.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]