One of the largest banks in South Korea, Shinhan, has entered into a partnership with two fintech firms to create a new security system using blockchain.
As part of the initiative, the bank signed an agreement with GroundX, a subsidiary of the Internet giant Kakao, and the blockchain developer Hexlant, according to the publication
in The Korea Times. The three companies will jointly develop a private key management system for use in Shinhan operations. At the same time, Ground X will provide a basic platform based on the blockchain, and Hexlant will create an infrastructure that will include a “hacking protection program” according to the publication. Testing of the system can begin as early as October.
“Blockchain has attracted the attention of the financial sector with its advantages, but financial firms have encountered difficulties in applying this technology in their system,” said a representative of the bank. “Shinhan Bank will create a user-friendly interface as part of the transaction with Ground X and Haxlant.”
This partnership is not the company’s first experience with blockchain. At the beginning of the month, it became known that Shinhan Financial Investment will launch
a service for lending securities on the blockchain. In addition, the bank’s subsidiary Shinhan Card recently received a patent for a blockchain payment system and announced the launch of a credit transaction service using blockchain.
In May, it was also reported that Shinhan Bank will use blockchain in lending, and last year the financial organization stated that it would use blockchain to optimize the work of employees