The Shinhan Bank of South Korea has partnered with multiple financial institutions for a stablecoin remittance project that was completed recently.
A major bank in South Korea has completed a stablecoin remittance project. The project could significantly benefit cross-border remittances. The bank, Shinhan Bank, completed the second proof-of-concept for the stablecoin remittances. It partnered with a Taiwanese firm and the SCB TechX unit of Siam Commercial Bank.
It used the Hedera network for the project and tried carrying out real-time settlements. Its national currencies were used for foreign exchange integration for remittances . Since it was carried out on the Ethereum Virtual Machine (EVM), other stablecoins also became eligible to use the mechanism.
The first proof-of-concept of this project was conducted by Shinhan Bank back in 2021. It had partnered with Standard Bank of South Africa then.
“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,” said the head of the blockchain division at Shinhan Bank, Byunghee Kim.
The official appreciated the Hedera network in helping them explore the potential of stablecoins through the project. He was joined in by SCB TechX’s CEO, who mentioned the benefits of stablecoins.
The project could become a turning point for cross-border remittances for the financial services industry in South Korea.