Shinhan Bank (the first modern bank in Korea), SCB TechX (Siam Commercial Bank’s technology innovation business unit), and the largest financial institution in Taiwan announced the successful completion of a stablecoin remittance proof-of-concept (PoC) pilot. The PoC was built on the highly-efficient and eco-friendly Hedera open-source public network.
The pilot achieved real-time settlement and real-time foreign exchange (FX) rate integration across the Thai Baht (THB), New Taiwan dollar (NTD), and South Korean won (KRW) in a test environment that aligns to current production capabilities. The PoC is EVM-compatible, meaning that any EVM-based stablecoin issuers can participate using the framework going forward.
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This PoC is a continuation of Shinhan Bank’s previous work that started in 2021, when they partnered with Standard Bank on stablecoin international remittances. The second pilot’s success marks a significant milestone in the quest for efficient, low-cost, cross-border payments.
“We are pleased to have partnered with Hedera to explore the potential of stablecoins as a means of facilitating cross-border remittances,” said Byunghee Kim, Chief of the Blockchain division at Shinhan Bank. “The successful completion of this second PoC marks an important step forward in our efforts to make cross-border payments faster, cheaper, and more accessible to people around the world.” Byunghee Kim further highlighted the importance of leveraging blockchain technology for cross-border payments, stating that, “Stablecoins offer a low-cost, fast, and reliable way to transfer value across borders, which can help to increase financial inclusion and improve access to financial services for individuals and businesses in underserved communities. With this next phase of PoC, we are pleased to have demonstrated how the use of Hedera’s EVM-compatible technology helps eliminate intermediaries, reduce costs, and speed up the remittance process.”
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SCB TechX emphasized the potential of stablecoins to increase financial inclusion, as their CEO, Trirat Suwanprateeb, stated that “stablecoins offer a low-cost, fast, and reliable way to transfer value across borders, which can help to increase financial inclusion and improve access to financial services for individuals and businesses in underserved communities.”
This announcement marks an important milestone for the financial industry, as more banks and financial institutions look to explore the potential of blockchain and distributed ledger technology (DLT) to transform the way we conduct cross-border payments.
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