South Korean Shinhan Bank completes stablecoin remittance pilot with Asian partners

South Korea’s Shinhan Bank has completed its 2nd proof-of-concept utilizing stablecoins for planetary remittances. Siam Commercial Bank’s SCB TechX portion and an unnamed Taiwanese fiscal instauration besides participated successful the project.

The task carried retired real-time colony and overseas speech integration with the banks’ nationalist currencies connected the Hedera network. The task was compatible with the Ethereum Virtual Machine (EVM), opening it up to usage by a big of different stablecoins.

Shinhan Bank conducted its archetypal proof-of-concept task successful November 2021 successful conjunction with South Africa’s Standard Bank, though that bank’s individuality was besides not instantly disclosed.

Shinhan Bank explained astatine the clip that it minted a excavation of South Korean won-backed stablecoins, and the partnering slope minted a stablecoin successful its section currency. A idiosyncratic was capable to bargain Shinhan-minted stablecoins and nonstop them to an relationship astatine the spouse bank. That slope provided the funds successful the locally denominated stablecoin, which the idiosyncratic could past exchange.

Related: Crypto could destruct 97% of accepted remittance fees: Coinbase

Byunghee Kim, caput of the blockchain part astatine Shinhan Bank, said, “We are pleased to person demonstrated however the usage of Hedera’s EVM-compatible exertion helps destruct intermediaries, trim costs, and velocity up the remittance process."

1/ In a continuation of their enactment connected #DLT-enabled cross-border remittances, @ShinhanBankENG - successful collaboration with SCB TechX & different fiscal institutions - has contiguous announced the palmy completion of a #stablecoin remittances PoC aviator connected #Hedera.https://t.co/OUAxOfU2U4

Remittances are noncommercial cross-border payments. They are typically slow, costly and hard to track. An International Monetary Fund authoritative stated earlier this twelvemonth that remittance providers cod $45 billion successful fees annually.

The usage of stablecoins provides an alternate to cardinal slope integer currency (CBDC) successful Web3 remittance solutions. There are galore CBDC cross-border outgo projects, including immoderate designed specifically for remittances, but fewer CBDCs person been launched, truthful that exertion remains tentative. Meanwhile, stablecoin-based remittance solutions are becoming much common, particularly successful Latin America.

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