Hedera Network (HBAR) has been adopted by Shinhan Bank and Siam Commercial Bank for a distributed ledger technology-powered stablecoin remittance solution.
Hedera, Shinhan Bank, and SCB join forces
South Korea’s Shinhan Bank and Siam Commercial Bank’s tech innovation business arm (SCB TechX) have announced the successful completion of a stablecoin remittance solution proof-of-concept on Hedera.
The Hedera team said it had been able to achieve fast settlement and real-time foreign exchange rate integration across three fiat currencies: the Thai Baht (THB), the New Taiwan dollar (NTD), and the South Korean won (KRW).
The team claims the proof-of-concept (PoC) is Ethereum Virtual Machine (EVM) compatible, making it possible for EVM-based stablecoin issuers to use the framework on completion. The latest PoC is the second phase of the blockchain-based cross-border payments pilot project started in 2021 by Shinhan Bank.
Cross-border payments
While blockchain technology has continued to find use cases across various sectors of the global economy, cross-border payments and remittances have been one of the most popular verticals.
Though Ripple (XRP), which recently secured a partial victory in its longstanding legal battle with regulators in the United States, occupies the frontline when it comes to lightning fast cross border payments, Shinhan Bank firmly believes its latest PoC shows stablecoins have the potential to facilitate fast and cheap cross-border payments and remittances.
Stablecoins have come under increased scrutiny since the crash of Do Kwon’s algorithmic Terra stablecoin last year. However, that has not deterred crypto platforms from rolling out new stablecoin products.
Earlier in January, Cardano (ADA) developers launched an ADA-backed algorithmic stablecoin called Djed. The stablecoin has failed to gain significant traction amidst a declining reserve ratio and depegging risks.
As crypto.news previously reported, Aave (AAVE), a decentralized finance (defi) platform, launched its algorithmic stablecoin dubbed GHO on Ethereum (ETH).
