Shinhan Financial Investment will launch a service for lending securities on the blockchain

Shinhan Financial Investment, a Korean company, a division of Shinhan Bank, will introduce a new service for blockchain-based P2P lending this year.

According to The Economic News and other local media, thanks to the new service for lending, individuals will be able to take loans and provide loans to others directly, rather than through intermediaries.

Typically, lending and lending securities are expensive for everyone except large investors. However, thanks to the P2P service, stockholders will be able to easily and cheaply provide their shares directly, receiving a fee for this, and owners of short positions will be able to borrow shares from counterparties without paying exorbitant fees to large institutions.

The Shinhan Financial Investment brokerage company, associated with the assets of the second largest banking group in the country, is developing a new service in cooperation with the Korean company Directional, which the Financial Services Commission (FSC) has allowed to provide stock loans and loans under the regulatory sandbox.

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Shinhan Bank is actively engaged in the implementation of blockchain-based solutions. For example, recently a subsidiary of Shinhan Card Bank received a patent for a blockchain payment system and announced the launch of a blockchain credit transaction service. In May, it was also reported that Shinhan Bank will use the blockchain in lending, and last year the financial institution announced that it would use the blockchain to optimize the work of employees.