- Shinhan Bank, SCB TechX, and a financial institution in Taiwan, have completed a successful pilot for stablecoin remittance.
- The pilot project aimed to tackle issues with cross-border payments.
- Byunghee Kim, head of Blockchain at Shinhan Bank, highlighted the advantages of stablecoins in increasing financial inclusion.
Shinhan Bank, SCB TechX (Siam Commercial Bank’s technology innovation business unit), and a prominent financial institution in Taiwan have jointly announced the successful completion of a proof-of-concept (PoC) pilot for stablecoin remittance. The PoC was developed using the open-source public network Hedera.
The objective of the project was to address common issues associated with cross-border payments, such as high fees, lengthy settlement times, and a lack of tracking features. SCB TechX, along with other financial institutions, participated in this pilot initiative.
Byunghee Kim, the head of blockchain at Shinhan Bank, highlighted the advantages of stablecoins, stating,
“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.”
The stablecoin remittance pilot was designed to be compatible with the Ethereum Virtual Machine (EVM), leveraging Hedera’s smart contract capabilities. Hedera announced that stablecoin issuers utilizing the EVM would be able to participate in future pilots using the tested framework.
Kim underlined the advantages of Hedera’s EVM-compatible technology, stating that the successful demonstration of its use in eliminating intermediaries, reducing costs, and expediting the remittance process was a significant achievement for the next phase.
Shinhan Bank asserts that its stablecoin solution enables individuals and organizations to send and receive funds in local stablecoins at significantly lower fees compared to traditional remittance methods. Kim expressed his satisfaction with the successful completion of the stablecoin remittance pilot.
Kim emphasized the significance of this achievement, stating that it represents an important step forward in Shinhan Bank’s ongoing endeavors to enhance cross-border payments, making the remittance process faster, more cost-effective, and accessible to individuals worldwide.
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