Hedera Network Powers Shinhan Bank's Successful Test of Stablecoin Payments
The South Korean commercial banking giant Shinhan Bank completed an EMV-compatible feasibility test for stablecoin remittance payments on the Hedera network.
According to the press release, the pilot included SCB TechX, Siam Commercial Bank's technology innovation business unit.
The stablecoin remittance proof-of-concept (PoC) pilot achieved real-time settlement and foreign exchange (FX) rate integration, the Hedera team said, across the Thai Baht (THB), New Taiwan dollar (NTD), and South Korean won (KRW).
The team added that the proof-of-concept is compatible with Ethereum Virtual Machine (EVM), as it uses Hedera’s smart contract capabilities, saying:
"The PoC is EVM-compatible, meaning that any EVM-based stablecoin issuers can participate using the framework going forward."
This PoC is another step in the bank's work started in late November 2021, when Shinhan partnered with Standard Bank on stablecoin international remittances.
Back then, the Hedera team argued that customers bear high intermediary bank costs under current financial systems. In the case of cross-border transfers between countries that lack liquidity and a direct network, customers pay $20-80 for intermediaries' fees on top of regular transfer fees.
In addition to that, transactions take 3-7 days. The customer can't track the transfer, and the process is not transparent.
3/ The success of this pilot marks a significant milestone as banks and institutions continue to explore ways #web3 and #DLT can revolutionize finance, bringing increased accessibility, security, and interoperability to the emerging digital economy.#HelloFuture
Following this second pilot, Kim Byunghee, Chief of the Blockchain division at Shinhan Bank, said that the successful completion of
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