South Korea’s Shinhan Financial Will Offer Blockchain-Based Services

South Korea’s Shinhan Financial Investments brokerage will now offer peer-to-peer stock lending via the blockchain as we can read today in some of the best cryptocurrency news sites.

The new service was introduced this year and now the individuals will be able to borrow and lend securities with other individuals face to face rather than using an intermediary. Some of the local Korean media reported the news earlier today. The securities lending and borrowing transactions are very expensive and inefficient for everyone.
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The commissions can also be very high and accurate information could be difficult to obtain. By using a peer-to-peer service based on the blockchain, the individual owners of stock can be able to lend their shares cheaply and directly to others earning a few in the process. The individual short sellers will also be able to borrow some stock from the counterparties without having to pay huge fees.

South Korea’s Shinhan brokerage is related to the country’s second-largest banking group by assets and is now expanding its capability by cooperating with a Korean company that has been permitted by the Financial Services Commission in order to provide stock lending and borrowing. The Sandboxes are being aggressively pushed by the current administration which lifts some of the regulatory pressure for testing the technologies and services. The company received its exception back in May under the Financial market sandbox program that was announced by the FSC.

Shinhan Bank was very aggressive in the blockchain pursuit. Just two years ago, it started using the technology for verification of gold bars and it later utilized it for interest rate swaps and cross border remittances. Also, the bank will use the technology for loan verification and will allow the customers to submit documents that need to be on paper in the past and authorized in person and signed manually.

As we can read in the altcoin news today, most of the banks in Korea are enthusiastic just as Shinhan is about blockchain rather than crypto. They are following the official government stance but they are running counter to the customers’ appetite for altcoins. The bank was positive on crypto and is now even accepting deposits from crypto exchanges.