Shinhan Bank partners with GroundX, a blockchain subsidiary of messaging app provider Kakao, and Hexlant, a blockchain developer on Wednesday.
Established in 1897, the South Korean based bank has been involved in blockchain technology for a long time now. Last year, Shinhan pursued cross-border transfers of funds for business clients using Ripple’s blockchain technology. The company has also invested over $427,000 in blockchain technology remittance startup Streami, and many more since 2015.
The agreement will see these three companies jointly create a private key management system for use within Shinhan’s systems. Ground X will be providing the underlying blockchain-based platform, while Hexlant is tasked with the creation of infrastructures that will include an “anti-cracking program,” as per the report.
The system is expected to witness its first test trial in the coming months.
Blockchain technology has been able to secure the interest and attention of the financial sector, mainly because of the advantages it possess.
With that being said, financial funding companies have been experiencing difficulties applying the technology to their organisation, an official at Shinhan explained.
The Bank will provide a suitable and user-friendly edge under the deal with Ground X and Haxlant”, he added.
GroundX recently launched its own private blockchain venture for use across Kakao’s services in June.
Experts have claimed the network is projected to be 150 times faster than ethereum. Its cryptocurrency is called “Klay.”