Shinhan Bank Teams up with GroundX on a Blockchain-Based Security System

  • The bank signed a memorandum of understanding with blockchain developer Hexlant and financial technology startup GroundX.
  • GroundX will provide the underlying blockchain-based platform, while Hexlant is in charge of creating an infrastructure.
Shinhan Bank Teams With GroundX for a Blockchain-Based Security System

Shinhan Bank Vietnam opening its 15th branch in Go Vap district in Ho Chi Minh (HCM) City.

South Korea’s oldest bank, Shinhan, has signed a memorandum of understanding with two fintech companies in order to build a blockchain-based security system, The Korea Times reported today.

According to the publication, the bank signed an agreement with blockchain developer Hexlant and financial technology startup GroundX. The three companies will jointly develop a Private Key Management System for Shinhan’s banking services. One of Shinhan Bank officials commented on why the partnership was needed, saying:

“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.”

The roles in this partnership have already been made public, with GroundX, the blockchain subsidiary of messaging app provider Kakao, being responsible for providing the underlying blockchain-based platform. Hexlant on the other hand will create an infrastructure that is supposed to include an anti-cracking program, and Shinhan Bank will provide a “convenient user-friendly interface”.

Earlier this year, GroundX launched its own blockchain called Klaytn, to be used across Kakao’s services. Recently Samsung added support for the native cryptocurrency of the Klaytn blockchain to its Software Developer Kit (SDK).

This is not the first time that Shinhan Bank has developed a product using blockchain technology. Earlier this month a report from South Korea’s Econonews showed that the bank has started work on a stock lending platform utilising a Distributed Ledger Technology (DLT) in partnership with financial services company Directional.

Discussion
Related Coverage
Visa to Partner With 50 Crypto Companies
  • Visa is set to establish card programs with over 50 leading crypto companies, including FTX, Coinbase, and Crypto.com.
  • The programs will enable users to spend cryptocurrencies with over 70 million Visa merchants.
July 7, 2021, 4:42 PM
Visa electronic card

Shutterstock

Discovery Science To Premier A Cryptocurrency Documentary
  • Called “Open Source Money”, the new TV series will focus on the story of Disney-linked blockchain project Dragonchain.
  • Produced by Vision Tree, the documentary series has been fully financed with over $1 million in cryptocurrency.
Blox Introduces Crypto Asset Management to IDEX
  • The Blox R&D team has worked closely with IDEX’s smart contract in order to understand its raw data.
  • IDEX traders will benefit by gaining better access and control over the accounting and management of their digital assets.