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[Blockchain Today Reporter Han Ji-hye] Shinhan Bank (KOSPI 055550), a major Korean bank, announced on the 14th that it has joined the Hedera Board of Directors, which oversees the decentralization management of the Hedera Hashgraph (Hedera) network.
Shinhan Bank is a leading company in the financial sector that utilizes distributed ledger technology (DLT) while driving industrial innovation. In January, Shinhan Bank made an investment in Korea Digital Asset Custody (KDAC), which provides a digital asset consignment service. In March of this year, it also completed the central bank digital currency (CBDC) pilot platform with LG CNS.
An official from Shinhan Bank said, “In the process of digital transformation (DT), customers and partners are increasingly interested in the benefits that can be obtained by improving the efficiency and security of the financial system.” It meets the needs of fast, fair and safe tech services. “This is enough to give the service provider the control and visibility they need.”
He added, “I am pleased to have the opportunity for Shinhan Bank to participate in the Hedera Board of Directors and continue to cooperate with global companies in various industries on next-generation financial solutions. The Hedera Network is raising expectations that it will become a foundational infrastructure that will increase efficiency in the Shinhan Bank process.
Earlier, Shinhan Bank has built various services such as policy fund loans, retirement pensions, and OTC derivatives based on the Hyperledger Fabric private blockchain since 2017. Shinhan Bank expects to accelerate service innovation in the banking sector by building more services using Hedera’s public distributed ledger infrastructure.
In March, another Hedera board member, IBM, recently announced a technology demonstration of its blockchain platform with Hedera. IBM received great attention for introducing interoperability that can guarantee the privacy of enterprise blockchain networks while maintaining the transparency of the public distributed ledger at the time.
This announcement showed the importance and value of public consensus that can be obtained through the Hedera Consensus service in the process of processing authorized transactions on IBM’s blockchain platform built on Hyperledger Fabric. The combination of Hedera Consensus and the IBM platform means organizations of all kinds, including financial services companies, can take their trust in accountability and auditability to the next level.
“We are seeing a rapid increase in interest in distributed ledger-based financial services worldwide, from financial institutions to public institutions,” said Hedera’s co-founder Mance Harmon. Based financial services increase the safety and efficiency of the wholesale/retail payment system, enable 24-hour global payment, advance a cashless society, are more reliable than closed-type electronic money, and are more reliable for those who do not have access to banknotes. It’s because it can give you an opportunity to take advantage of finance.”
In addition, he said, “I am very happy that Shinhan Bank has participated in the Hedera Board of Directors, and will lead the future financial leadership position together.