Major Korean bank to boost customer security with blockchain tech

South Korea’s oldest lender, Shinhan Bank, announced on Wednesday that it had teamed up with fintech firm Ground X and blockchain developer Hexlant to jointly develop blockchain security technology, local news outlet The Korea Times has reported.

According to the publication, under the terms of the agreement, the three firms will develop the Private Key Management System for Shinhan’s banking system. The firms are expected to test the new technology by 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,” a Shinhan official said, as quoted by The Korea Times. “Shinhan Bank will provide a convenient user-friendly interface under the deal with Ground X and Haxlant.”

This is not the first time Shinhan has turned to blockchain to improve its operations. Earlier this year, the bank started using a blockchain platform to speed up its approval process for loans.

Kakao’s blockchain unit

Meanwhile, GroundX is the blockchain arm of South Korean mobile messaging firm Kakao, which has become increasingly involved with the sector in the past year. Last year, the company began developing a proprietary blockchain seeking to combine the strength of both private and public networks. The blockchain called Klaytn was released earlier this year with the backing of a number of major companies that formed a “governance council” to oversee the blockchain network’s development and operations.

“The Council consists of 19 global top-tier companies that have successfully produced massive user-based popular services in various industry domains including IT, telecommunications, content, games, and finance. They are also key business units of some of Asia’s largest companies,” GroundX said at the time.

The fintech also released its own crypto token called klay, which is native for the Klaytn network.

Featured image: railway fx / Shutterstock.com

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