SEOUL, South Korea and DALLAS, November 29, 2021 / PRNewswire / – Shinhan Bank, the first bank of South Korea, today announced that it has completed the development of a proof of concept, with a global mega-bank outside of Korea, based on the Hedera network, leveraging stablecoins and focused on international remittances. Using the Hedera Token Service (HTS) and the Hedera Consensus Service (HCS), the project aims to test the issuance and distribution of stablecoins, applied to a financial use case that typically suffers from high fees, longer waits and lack of tracking features. .
In today’s financial systems, when individuals or organizations send cross-border transfers, the customer incurs high intermediary bank fees. For cross-border transfers between countries that lack cash and a direct network, customers typically pay the equivalent of twenty to eighty US dollars for intermediary fees in addition to the usual cross-border transfer fees. Transactions typically take three to seven days to complete. In addition, the customer has no visibility during the transaction, and cannot follow their transfer during the process. With the stablecoin solution developed by banks, individuals and organizations can send and receive funds in locally-denominated stablecoin, with remarkably low fees.
Shinhan plans to mint coins backed by the South Korean Won (KRW) and the partner bank will mint coins backed by their local currency. Users will be able to purchase Shinhan-issued KRW-based stable coins and send them to an account at the partner bank. The recipient will then be able to receive the funds in a locally denominated stablecoin and exchange it for the local currency. Both banks will use the Hedera Consensus Service (HCS) to track and record transactions and confirm the exchange rate at the time of each transaction.
“International remittances were a huge market for $ 702 billion in 2020, with $ 539 billion go to low and middle income countries1,” noted Mance Harmon, CEO and co-founder of Hedera. There is a huge opportunity to cut out the middleman and make this process considerably more efficient and profitable, getting as much money as possible for the people who often need it urgently. We congratulate Shinhan and his partner for developing this solution, and are proud that it takes advantage of the economic and speed advantages that only the Hedera network can offer. “
Shinhan Bank is a leader in leveraging distributed ledger (DLT) technology to drive financial innovation. In January of this year, Shinhan invested in Korea Digital Asset Custody (KDAC), an industry consortium of companies that provide digital asset custody services. In March, Shinhan completed a demonstration platform for central bank digital currencies (CBDCs), in collaboration with LG CNS. The company joined the Board of Directors of Hedera in April 2021.
Shinhan Bank officials said, “Joining the Hedera Board of Governors this spring has allowed us to dramatically accelerate our engagement with other global industry leaders to harness the power of the public ledger. distributed fast, fair and green from Hedera. Profitable and efficient international remittances are the perfect, real-world financial use case to leverage a network that offers the speed and low cost of Hedera. finance and financial inclusion.
For more information, please visit https://hedera.com/stablecoin-settlement.
About Shinhan Bank
Shinhan Bank is a leading commercial bank in South Korea with KRW 471.5 billion in assets. The company offers a full range of banking services to its 20 million customers – individuals, SMEs and large companies – with 1,032 branches including 156 global branches in twenty countries; the company also serves its 11.9 million mobile users with its award-winning “SOL” app. The financial group of the company “Shinhan Financial Group” is a diversified holding company with 17 companies including Shinhan Card, Shinhan Investment and Shinhan Life. The financial group’s stock is listed on the Korea Stock Exchange.
The Hedera network is the most widely used, sustainable and widely used public ledger for the decentralized economy. The platform is governed by a board of leading global organizations, including Avery dennison, Boeing, Chainlink Labs, Dentons, Deutsche Telekom, DLA Piper, EDF (Électricité de France), eftpos, FIS (WorldPay), Google, IBM, the Indian Institute of Technology (IIT), LG Electronics, Magalu, Nomura Holdings, ServiceNow, Shinhan Bank, Standard Bank Group, Swirlds, Tata Communications, University College London (UCL), Wipro and Zain Group.
For more information, visit www.hedera.com, or follow us on Twitter at @hedera, Telegram at t.me/hederahashgraph or Discord at www.hedera.com/discord. The Hedera white paper is available at www.hedera.com/papers.
For media inquiries
E: [email protected]
E: [email protected]