Shinhan Bank has confirmed the technical feasibility of financial services utilizing stablecoins, including savings accounts, loans, and international remittances.
On October 20, Shinhan Bank announced that it has completed a proof of concept (PoC) for stablecoin applications in its deposit and lending operations in collaboration with fintech security firm Aton.
This validation aimed to explore whether the use of stablecoins could extend beyond traditional payment and remittance functions to include banking deposit and lending services.
In the deposit sector, the feasibility of using stablecoins for savings account subscriptions, additional deposits, and early withdrawals was assessed. In the lending sector, the entire process from applying for loans secured by stablecoins to repayment and settlement was examined.
In the international remittance sector, the procedure for converting Korean won stablecoins into dollar-based stablecoins and sending them to overseas digital wallets was validated.
Shinhan Bank explained that this proof of concept has established a comprehensive flow from stablecoin issuance to payment, laying the technical groundwork necessary for future financial product development.
Looking ahead, the bank plans to monitor regulatory trends from financial authorities while pursuing the development of stablecoin-based financial products and exploring new business opportunities.
Shinhan Bank President Shin Hak-ki stated, "This proof of concept has confirmed the limitless potential of Korean won stablecoins. With a foundation for collaboration in the digital asset infrastructure sector now established, we will accelerate efforts to provide innovative financial experiences utilizing digital asset technology."
* This article has been translated by AI.
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