Shinhan Bank, one of the largest banking institutions in South Korea, has partnered with Klaytn, a global blockchain platform developed by Kakao subsidiary Ground X.
According to an announcement on Monday, Shinhan Bank has joined Klaytn’s blockchain governance council and becomes a member of the Klaytn blockchain’s co-governance. As part of the new partnership, Shinhan will also be involved in the development of Klaytn-based digital services to support fintech innovation.
Klaytn was founded in June 2019 and is a blockchain service provider that focuses on the integration of blockchain solutions into enterprise-class infrastructures. The Klaytn blockchain is a hybrid blockchain network that combines the functions of public and private blockchains to ensure decentralized data and governance as well as low latency and high scalability. The Klaytn network implements the native KLAY token to incentivize engagement to maintain 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 and has more than 30 members to date. Shinhan is also the first of its kind among its membership, including tech companies like LG Electronics and large crypto companies like Binance.
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Shinhan’s entry to the council marks a major milestone in Klaytn’s growth as the bank’s stake would confirm Klaytn’s compliance, the announcement said, adding:
“Shinhan Bank is the first bank to join Klaytn’s efforts as a key decision maker. With Shinhan Bank by our side, we can reassure our users that we are fully compliant. This also removes the risk of central bank non-compliance. “
Shinhan Bank has grown into a major commercial bank in South Korea involved in a variety of initiatives related to digital currency and blockchain. In March, Shinhan completed a blockchain-based pilot platform for a central bank digital currency in partnership with LG Corporation’s IT service arm, LG CNS. The bank has also actively invested in the industry with a strategic investment in the Korea Digital Asset Trust and participated in a $ 7.5 million financing round for Samsung-backed blockchain startup Blocko.