Shinhan Bank and Siam Commercial Bank’s SCB TechX have conducted a successful proof-of-concept (PoC) pilot for stablecoin remittances on the Hedera network. The pilot aimed to test the efficiency, cost, and settlement speed of cross-border payments using stablecoins.

Key Takeaways

• Shinhan Bank and SCB TechX complete a PoC pilot for stablecoin remittances on the Hedera network.
• The pilot involved real-time, low-cost remittances using South Korean won (KRW), Thai Baht (THB), and New Taiwan dollar (NTD).
• The second PoC test on Hedera’s distributed ledger network focused on the efficiency, cost, and settlement speed of cross-border payments.
• EVM-compatibility allows the system to be open to any EVM-based stablecoin issuers, facilitating future expansion.

In the pilot, the two banks achieved real-time foreign exchange settlement across three currencies: South Korean won (KRW), Thai Baht (THB), and New Taiwan dollar (NTD). The use of Hedera’s EVM-compatible technology eliminated intermediaries, reduced costs, and sped up the remittance process.

Shinhan Bank’s Chief of Blockchain division, Byunghee Kim, stated, “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.“

The EVM-compatibility of the PoC enables the participation of any EVM-based stablecoin issuers. This opens up possibilities for more banks and financial institutions to tap into the potential of the Hedera network as the cross-border payments ecosystem expands.

FAQs

What is Hedera network?

Hedera is a decentralized public network that uses distributed ledger technology to provide fast, secure, and fair transactions. It is built on the Hedera Hashgraph consensus algorithm.

What are stablecoins?

Stablecoins are cryptocurrencies designed to have a stable value by pegging it to another stable asset, such as a fiat currency or a commodity. They provide stability and are often used in cross-border transactions.

How does the pilot benefit cross-border payments?

The pilot aims to make cross-border payments faster, cheaper, and more accessible by utilizing stablecoins and eliminating intermediaries. It tests the efficiency, cost, and settlement speed of cross-border remittances using the Hedera network’s EVM-compatible technology.