Shinhan Bank, one of the largest banking institutions in South Korea, has entered into a partnership with Klaytn, a global blockchain platform developed by Kakao's subsidiary Ground X.
According to the Monday announcement, Shinhan Bank has joined Klaytn’s blockchain governance council and become a member of the co-governance of the Klaytn blockchain. As part of the new partnership, Shinhan will be also involved in the development of Klaytn-based digital services to support fintech innovation.
Launched in June 2019, Klaytn is a blockchain service provider focusing on integrating blockchain solutions into enterprise-grade infrastructures. The Klaytn blockchain is a hybrid blockchain network, combining features of both public and private blockchains to ensure decentralized data and governance, as well as low latency and high scalability. The Klaytn network implements its native KLAY token to incentivize commitment to maintaining the growth of the Klaytn ecosystem.
According to the announcement, Shinhan is the first traditional financial institution in South Korea to join Klaytn’s governance council, which lists more than 30 members so far. Shinhan is also the first institution of its kind among members including tech companies like LG Electronics and major crypto companies like Binance.
Shinhan’s entrance into the council marks an important milestone for Klaytn's growth, as the bank’s participation would endorse Klaytn’s compliance, the announcement notes, adding:
“Shinhan Bank is the first bank to join Klaytn’s endeavor as an important decision-making party. By having Shinhan Bank by our side, we can once again reassure our users of our complete compliance with the regulations. This also eliminates the risk of noncompliance with the central bank.”
Shinhan Bank has emerged as a major commercial bank in South Korea involved in a wide number of digital currency and blockchain-related initiatives. In March, Shinhan completed a blockchain-based pilot platform for a central bank digital currency in partnership with LG Corporation’s IT services arm, LG CNS. The bank has also been actively investing in the industry with a strategic investment in Korea Digital Asset Trust and participating in a $7.5 million funding round for Samsung-backed blockchain startup Blocko.