South Korea’s Shinhan Bank has completed a proof of concept for using stablecoins for international money transfers. The experiments were based on the Hedera Hashgraph network.
In the pilot project, SCB TechX — the technology arm of Thailand’s Siam Commercial Bank — and an unnamed financial institution in Taiwan participated.
According to the statement, the partners achieved real-time settlements and the integration of foreign exchange rates (won, baht, and the New Taiwan dollar) into the test blockchain environment.
The solution is compatible with EVM networks, and the framework could later be used by any stablecoin issuers on that basis.
For Shinhan Bank, the proof of concept followed on from joint experiments with South Africa’s Standard Bank. In 2021 the institutions tested the potential of ‘stablecoins’ for cross-border settlements.
“Stablecoins offer a cheap, fast and reliable way for international transfers that could expand access to financial services for individuals and businesses in regions with limited access,” said a Shinhan Bank spokesperson.
In 2021 the bank invested in the Korean consortium of digital asset custodians.
In collaboration with the IT division of the LG Corporation, the institution developed a pilot blockchain platform for the Bank of Korea’s CBDC.