South Korea's second largest bank develops blockchain-based stock lending business

According to Coindesk's August 4th report, Shinhan Financial Investment, a subsidiary of Shinhan Bank, will soon provide P2P stock lending through blockchain technology.

201906050619338404 (Source: flickr)

According to South Korean local media such as Economic News, this year, after the launch of this new service, individuals will be able to borrow directly from other individuals rather than intermediaries.

Securities lending transactions are more convenient for investors with large capital, but because of the high commission costs and the difficulty of obtaining accurate information, it is usually inefficient and costly for retail investors. Through P2P services, retail investors can lend their stocks directly to others with ease and at a lower fee, and earn a fee in the process. Individual short sellers will also be able to borrow stocks from traders who are willing to lend without having to pay excessive fees to large institutions.

Shinhan Financial Investment is a securities company affiliated with Shinhan Bank, Korea's second largest banking group, which will work with Directional to develop related products. Directional has been licensed by the Korea Financial Services Commission (FSC) as part of the government sandbox program. The company can provide stock lending business. The current government of South Korea is vigorously promoting the sandbox program, allowing for the temporary cancellation of testing requirements for innovative technologies and services. The Korea Financial Markets Committee announced in April this year that under the promotion of the government sandbox plan, Directional will also be exempted from the development of blockchain projects, but there is no information on the launch of its related products.

Shinhan Bank has been actively seeking blockchain solutions. Two years ago, it began to use blockchain technology for gold bar verification, and has been using blockchain technology for interest rate swaps and cross-border remittances. It has been reported that in May of this year, the bank will use the technology for loan verification, enabling customers to electronically submit documents that must have been submitted in writing beforehand.

Like most commercial banks in South Korea, Shinhan Bank's positive attitude towards the blockchain sector is not limited to cryptocurrencies. It has always adhered to the government's position in this emerging field, but is skeptical about cryptocurrencies.

In the past year, the bank's attitude toward cryptocurrency has changed, for example, it began accepting deposits from cryptocurrency exchanges and customers. However, in view of the increased review by the relevant departments since 2018 and the new standards of the FATF, the bank has strengthened the monitoring of cryptocurrency-related accounts and is establishing a system and procedures for implementing real-name account requirements and implementing your customers. (KYC) standard.

Like other banks, Shinhan Bank is currently negotiating a deposit agreement with a cryptocurrency exchange. We will wait and see.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Blockchain

Bitcoin for $0.32, they dreamed back to 2009 today

On August 23, 2019, the history of cryptocurrencies may remember this day. In the normal market price of Bitcoin was ...

Market

Multiple macroeconomic negative factors have hit the market, causing Bitcoin to drop below 26,000 US dollars in the short term.

24-hour bitcoin price analysis chart shows that bitcoin is in a strong downtrend, with bears dominating the market.

Opinion

SBF Trial Records Fully Exposed Blame-shifting, Amnesia, Contradictions

Today is the real highlight, as the prosecution lawyer will conduct a half-day long cross-examination of SBF after th...

Blockchain

"Gemini" Risk Control Interview: How the Traditional Financial Regulatory Framework Maps to the Crypto Industry

Source: Yahoo Fiance Original author: Daniel Kuhn Translator: Moni Source: Odaily Planet Daily Dragon White: The Cent...

Opinion

Checklist of 9 popular cryptocurrencies virtual credit cards

Cryptocurrency virtual credit cards launched by cryptocurrency exchanges (such as Binance) allow for consumption and ...

Blockchain

BiClub realizes full automation of OTC platform and helps build a large-scale digital asset financial service system

In the early hours of Beijing time yesterday, BiClub ( www.biclub.io , WeChat biclubcom) team has completed a key ste...