Shinhan Bank, in collaboration with SCB TechX and other financial institutions, have completed a proof-of-concept (PoC) pilot for low-cost, real-time stablecoin remittances on the Hedera network. The second PoC test on Hedera’s distributed ledger network follows the initial program launched in 2021, which involved Standard Bank.
This pilot was designed to assess the cost, efficiency, and settlement speed for cross-border payments. The participating banks achieved real-time foreign exchange settlement across three currencies: South Korean You can win (KRW), Thai Baht (THB), and the New Taiwan dollar (NTD).
According to the press release, Shinhan Bank’s Chief Blockchain Division Byunghee Kim said in a statement: “The successful completion of this second PoC marks an important step forward in our efforts to make cross-border payments faster, cheaper, and more accessible to people around the world… With this next phase of PoC, we are pleased to have demonstrated how the use of Hedera’s EVM-compatible technology helps eliminate intermediaries, reduce costs, and speed up the remittance process.”
EVM compatibility for the PoC will allow any stablecoins based on EVMs to use the system. This is likely to lead to more banks and financial institutions tapping into the potential of the system as the cross-border payment ecosystem expands.
