South Korea’s Shinhan Bank Partners With Kakao’s GroundX To Develop Blockchain Security System

Blockchain, News | August 15, 2019 By:

Shinhan Bank, one of South Korea’s largest commercial banks, has signed a memorandum of understanding (MoU) with to blockchain companies to develop a blockchain-based security solution.

Local news outlet The Korea Times reported that Shinhan Bank will be working with Ground X, the blockchain subsidiary of South Korean chat giant Kakao, and blockchain developer Hexlant to build a Private Key Management System for its banking system.

Under the deal, Ground X will provide a blockchain-based platform while Hexlant develops the infrastructure to feature an anti-cracking program for the platform. The first tests of the new systems are expected to take place in October.

“Blockchain technology has gained attention from the financial sector for its advantages, but financial firms have experienced difficulties in applying the technology to their system,” said a Shinhan Bank official. “Shinhan Bank will provide a convenient user-friendly interface under the deal with Ground X and Haxlant.”

Earlier this year, Shinhan Bank introduced a blockchain-based loan system to verify proof documents submitted by borrowers during “non-face-to-face” lending. The new system was part of the bank’s broader effort to improve remote client access to bank services and expand product access.