Hedera Network (HBAR) adopted by Shinhan Bank and Siam Commercial Bank for stablecoin remittance solution
Hedera Network (HBAR) has partnered with Shinhan Bank and Siam Commercial Bank (SCB) to develop a stablecoin remittance solution using distributed ledger technology. The proof-of-concept (PoC) was successfully completed on Hedera and demonstrated fast settlement and real-time foreign exchange rate integration across three fiat currencies: Thai Baht (THB), New Taiwan dollar (NTD), and South Korean won (KRW). The PoC is Ethereum Virtual Machine (EVM) compatible, allowing EVM-based stablecoin issuers to adopt the solution. This collaboration is part of a larger blockchain-based cross-border payments pilot project initiated by Shinhan Bank in 2021.
Key Points:
- Hedera Network (HBAR) has collaborated with Shinhan Bank and Siam Commercial Bank (SCB) for a stablecoin remittance solution.
- The proof-of-concept (PoC) on Hedera showcased fast settlement and real-time foreign exchange rate integration.
- The PoC is Ethereum Virtual Machine (EVM) compatible, enabling EVM-based stablecoin issuers to leverage the solution.
- This partnership is a continuation of a blockchain-based cross-border payments pilot project by Shinhan Bank.
- Stablecoins have the potential to facilitate quick and cost-effective cross-border payments and remittances.
Hot Take:
This collaboration between Hedera Network, Shinhan Bank, and Siam Commercial Bank demonstrates the growing interest in stablecoins and their potential for cross-border payments. While Ripple (XRP) remains a prominent player in this space, Shinhan Bank believes that stablecoins can offer a fast and affordable solution. Despite the scrutiny faced by stablecoins, with the Terra stablecoin crash as a recent example, the industry continues to innovate and launch new stablecoin products. This adoption of Hedera by two major banks in Asia highlights the increasing recognition of blockchain technology in traditional financial institutions.
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