South Korean-based Shinhan Bank, today announced that it has completed the development of a Proof-of-Concept (PoC) built on the Hedera network, leveraging stablecoins and focused on international remittances, with a megabank outside of Korea.
Utilizing the Hedera Token Service (HTS) and 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, long waits, and the absence of a tracking feature.
Shinhan plans to mint South Korean Won (KRW)-backed stablecoins and the partnering bank will mint stablecoins backed by their local currency. Users will be able to buy KRW-based stablecoin that Shinhan issues, 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. The two banks will use the Hedera Consensus Service (HCS) both to track and record transactions and confirm the foreign exchange rate at the time of each transaction.
Officials at Shinhan Bank said, “Joining the Hedera Governing Council this spring has allowed us to significantly accelerate our engagement with other global industry leaders to leverage the power of Hedera’s fast, fair, green public distributed ledger. Cost-effective, efficient international remittance is the perfect, real-world financial use case to build on a network that provides Hedera’s speed and low cost.”