Summary Shinhan Financial Group and Visa will develop stablecoin infrastructure supporting issuance, transfers, settlements, and redemptions across South Korea’s banking sector. Shinhan Bank,
South Korea’s Shinhan Financial Group has partnered with Visa to develop stablecoin payment infrastructure designed for regulated domestic banking services. The proposed system will support stablecoin issuance, transfers, settlements, and redemptions across South Korea’s established financial channels and banking networks.
Shinhan will test these functions through Visa’s stablecoin platform before designing a commercial model suited to domestic financial institutions. Their agreement also covers card settlements, artificial intelligence payment models, and expanded payment services for businesses and individual customers. However, every proposed service must comply with South Korea’s developing digital asset regulations and established consumer protection requirements.
Also Read: XRP Ledger Developer Libraries Gain 3.3.0 Support as New Features Expand
Shinhan expects several major subsidiaries to participate as the planned stablecoin payment system enters its testing and development stages. These businesses include Shinhan Bank, Shinhan Card, and Jeju Bank, which collectively serve several domestic customer and commercial segments.
Their involvement will allow Shinhan to conduct stablecoin trials across banking services, card payments, and broader consumer finance operations. Additionally, Visa will provide its global payment network and digital technology throughout the infrastructure development and testing process.
In April, Shinhan Card partnered with the Solana Foundation to test stablecoin payment systems through the Layer 1 blockchain. That pilot examined whether blockchain technology could support transaction processing within the financial group’s established credit card operations.
Moreover, Shinhan Asset Management partnered with Solana Foundation, Etherfuse, and decentralized exchange Orca on another digital asset initiative. The four participants plan to test the issuance and distribution of a tokenized investment fund denominated in South Korean won.
South Korean lawmakers are developing the Digital Asset Basic Act to regulate the country’s expanding cryptocurrency and digital finance sector. The proposed legislation would establish requirements covering stablecoins, virtual asset service providers, and cryptocurrency exchange-traded funds.
Hence, the final rules could determine how banks provide stablecoin issuance, custody, transfers, settlements, and redemption services within South Korea. Shinhan reported quarterly net income of 1.82 trillion won, equivalent to approximately $1.3 billion, demonstrating its financial capacity.
The agreement ultimately connects Shinhan’s domestic banking experience with Visa’s international network and established digital payment technology infrastructure.
Also Read: Bitcoin’s $300,000 Target Faces a Major Quantum Security Test
The post South Korea’s Shinhan, Visa Partner to Build Stablecoin Payment System for Banks appeared first on 36Crypto.
