South Korean Shinhan Bank successully tests stablecoin payments on Hedera Network

Shinhan Bank, one of South Korea’s largest commercial banks and a member of the Hedera Governing Council, has completed a stablecoin remittance proof-of-concept on the Hedera public network in partnership with Thailand’s SCB TechX and a major Taiwanese financial institution. Announced on July 18, 2023, the pilot tested issuing and using bank-minted, fiat-pegged stablecoins for cross-border transfers among Thai baht (THB), New Taiwan dollar (NTD), and South Korean won (KRW) in a controlled environment aligned with current production capabilities. Built using the Hedera Token Service (HTS) and Hedera Consensus Service (HCS), the system was designed to address traditional cross-border payment frictions such as high fees, long settlement times, and limited traceability. In the pilot, participating banks tokenized their local currencies as stablecoins on Hedera, enabling near real-time settlement with integrated FX rates and transaction finality in a few seconds rather than days. The framework is EVM-compatible, so any issuer of EVM-based stablecoins can theoretically plug into the same model, supporting multi-bank and multi-currency interoperability at scale. By eliminating intermediaries, significantly reducing fees (Hedera and Shinhan highlight potential cost reductions of up to around 95% compared with legacy rails), and providing an immutable audit trail for each transaction, the project is positioned as a step toward more efficient, compliant, and transparent cross-border payment infrastructure for regulated institutions. The initiative builds on Shinhan’s earlier Hedera-based remittance PoC with Standard Bank in 2021, signaling ongoing experimentation by major banks with permissionless DLT for real-world payment use cases.

✨ AI-generated background, compiled from web sources — not editorial content.

More coverage

• Shinhan Bank, SCB TechX and Other Financial Institutions ... (prnewswire.com)
• Shinhan Bank, SCB TechX Successfully Pilot Stablecoin ... - Hedera (hedera.com)
• Shinhan Bank to Conduct Stablecoin International Remittance PoC ... (glenbrook.com)
• Shinhan Bank Explores Stablecoin Payments on Hedera Network (binance.com)
• Shinhan Bank - Hedera (hedera.com)

Explore the topic

• Hedera
• Stablecoin Payments