<p>South Korean banking institution Shinhan Bank, Thai Siam Commercial Bank’s tech arm SCB TechX, and a Taiwanese financial institution recently <a href="https://hedera.com/blog/shinhan-bank-scb-techx-successfully-pilot-stablecoin-remittances-on-the-hedera-network" rel="noopener noreferrer nofollow">announced</a> the successful completion of a proof-of-concept (PoC) pilot of stablecoin remittances. The PoC was built on the hashgraph consensus-based public ledger, Hedera. Hashgraph consensus is a technology that provides an alternative to the more commonly used blockchain consensus mechanisms.</p><h2 id="header-0">Three currencies</h2><p>The pilot test was conducted to assess the feasibility and functionality of a system involving real-time settlement and real-time foreign exchange (FX) rate integration. The test was successful in implementing these capabilities for three currencies: the Thai Baht (THB), the New Taiwan dollar (NTD), and the South Korean won (KRW). Since the PoC is compatible with the Ethereum Virtual Machine (EVM), EVM-based stablecoins should be able to join the PoC framework without significant modifications.</p><h2 id="header-1">More efficient and affordable</h2><p>In <a href="https://hedera.com/blog/shinhan-bank-to-conduct-stablecoin-international-remittance-poc-on-hedera-network-in-partnership-with-major-multinational-bank" rel="noopener noreferrer nofollow">November 2021</a>, Shinhan Bank developed this PoC on the Hedera network in collaboration with an international bank outside Korea, employing stablecoins for cross-border remittances. The success of the subsequent pilot test this year represents a major achievement in the pursuit of more efficient and affordable cross-border payments, especially given that the financial industry has been increasingly recognizing the transformative possibilities of blockchain and distributed ledger technology.</p><p>These banks expect that this stablecoin solution will allow individuals and organizations to conduct transactions in locally denominated stablecoins, benefiting from remarkably low fees.</p><p>Kim Byung-hee, Chief of the Blockchain Division at Shinhan Bank, said, “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.”</p><p>SCB TechX’s CEO Trirat Suwanprateeb echoed this sentiment, stating that this endeavor can help “increase financial inclusion and improve access to financial services for individuals and businesses in underserved communities.”</p>

Shinhan Bank and SCB TechX Succeed in Stablecoin Remittance Pilot

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