For the effort, the bank has sign an agreement with GroundX, the blockchain subsidiary of messaging app provider Kakao, and blockchain developer Hexlant, according to an article from The Korea Times on Wednesday.
Shinhan, one of the oldest and largest banks in South Korea, has partnered with two fintech firms to build a new security system using blockchain tech.
The deal will see the three companies jointly develop a private key management system for use within Shinhan’s systems, with Ground X to provide the underlying blockchain-based platform, and Hexlant to create infrastructure that will include an “anti-cracking program”, as per the report.
The system could see testing as soon as October.
“Blockchain technology has gained attention from the financial sector for its advantages, but financial firms have experienced difficulties in applying the technology to their system”, said an official at the bank. “Shinhan Bank will provide a convenient user-friendly interface under the deal with Ground X and Haxlant.”
GroundX notably launched its own blockchain for use across Kakao’s services in June. Called Klaytn, the network is claimed to be 150 times faster than ethereum (though is a hybrid private blockchain with permissioned nodes that can be double checked by public participants), and has its own cryptocurrency called “klay.”
In May, Shinhan launched a blockchain platform to verify items of proof required for credit lending, such as qualification or certification documents, seeking cost and speed improvements.