Shinhan Card Validates Blockchain-Based Payment Technology: "Strengthening Stablecoin Competitiveness"

On April 9, Shinhan Card announced that it had successfully completed the proof of concept (PoC) for six core technology initiatives using stablecoins and blockchain, as part of a proactive response to the changing paradigm of next-generation payments.

The focus of this technology validation was to combine stablecoins and blockchain technology with the existing card payment system, providing a new payment experience and exploring the potential for expanding Web 3.0-based financial services such as global settlement and cross-border payments. To achieve this, Shinhan Card forged strategic partnerships with domestic blockchain technology companies such as Aton and Block Odyssey, as well as global Web 3.0 firms including Solana and Fireblocks, and global payment network operators such as Visa and Mastercard, carrying out large-scale technology validation.

The six core initiatives validated through this PoC were: ▲ Blockchain-based P2P payments ▲ Integrated digital asset payment infrastructure ▲ Stablecoin-based hybrid check and credit products ▲ Stablecoin-based cross-border remittance and settlement ▲ Verification of stablecoin payment, exchange, and settlement networks ▲ IC chip-based card-type hardware wallet payment services.

For the blockchain-based P2P payment initiative, Shinhan Card collaborated with fintech security company Aton to test the issuance of test coins on a global blockchain network and to tokenize and convert MyShinhan Points into coins. The company also validated direct wallet-to-wallet (W2W) payments between customers and merchants using stablecoins, as well as scenarios for paying card bills. In the testing of integrated digital asset payment infrastructure, Shinhan Card worked with blockchain technology company Block Odyssey to enable customers to use their external digital asset wallets to pay and manage payment amounts and network fees.

Specialized payment models through global partnerships were also developed. In collaboration with Fireblocks and Mastercard, Shinhan Card tested a hybrid card where, in check mode, stablecoins are withdrawn instantly, and in credit mode, a payment limit is granted using stablecoins as collateral. Additionally, the company worked with Visa to validate the feasibility of processing cross-border remittance and settlement using stablecoins.

Shinhan Card also partnered with Solana and Node Infra to design and test programmable money payment models utilizing Web 3.0 wallet-based smart contracts and digital assets. Smart contracts refer to technology in which pre-agreed contract terms are programmed onto a blockchain, allowing the contract to be executed automatically without a third-party intermediary when the conditions are met.

In partnership with blockchain technology company IoTrust and others, Shinhan Card independently designed a blockchain-based payment technology that creates hardware wallets and links them with IC cards. Hardware wallets are offline wallets that store digital assets in physical devices fully disconnected from the internet, which fundamentally eliminates the risk of hacking. A Shinhan Card representative stated, "Through this proof of concept, we thoroughly validated our role as a bridge between the existing fiat currency-based payment system and the digital asset ecosystem," and added, "We will continue to discover various business models that enhance customer convenience in payment and settlement, and will strengthen our competitiveness in the next-generation financial market, including the activation of KRW stablecoins in the future."

This content was produced with the assistance of AI translation services.