South Korean bank Shinhan will create a security system on the blockchain

One of South Korea’s largest banks, Shinhan partnered with two fintech firms to create a new blockchain security system.

As part of the initiative, the bank signed an agreement with GroundX, a subsidiary of Internet giant Kakao, and blockchain developer Hexlant, according to a publication
at The Korea Times. The three companies will jointly develop a private key management system for use in Shinhan operations. At the same time, Ground X will provide a basic blockchain-based platform, and Hexlant will create an infrastructure that will include a “hacking protection program” according to the publication. System testing may begin in October.

“Blockchain attracted the attention of the financial sector with its advantages, but financial firms encountered difficulties in applying this technology in their system,” said a representative of the bank. “Shinhan Bank will create a user-friendly interface as part of the deal with Ground X and Haxlant.”

This partnership is not the first experience of a blockchain company. Earlier this month, it became known that Shinhan Financial Investment will launch
service for lending securities on the blockchain. In addition, a subsidiary of Shinhan Card Bank recently 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.