Korean Brokerage Pioneers P2P Stock Lending via Blockchain Platform

Asia Blockchain Review
August 14, 2019

South Korea-based Shinhan Bank is slated to offer affordable peer-to-peer (P2P) stock lending via a blockchain platform. The platform is being jointly developed by the banking group’s brokerage arm Shinhan Financial Investment in partnership with domestic financial services provider Directional, according to a report by CoinDesk.

Cutting Out the Middleman with P2P Blockchain Platform

According to local media outlets, the service slated to begin operating later this year — would allow traders to lend and borrow stocks directly with other traders. Eliminating intermediaries could lower overall expenses incurred by traders, a common pain point in securities lending that heightens the barrier to entry for all but large, institutional investors. 

Fees can instead be charged by securities lenders, making the process more lucrative, while short-sellers would be able to borrow stock from counterparties without incurring expensive intermediary costs.

Shinhan-Directional Project Admitted into Regulatory Sandbox

Joint development on the P2P stock lending platform has been approved by the Financial Service Commission (FSC) for its regulatory sandbox. 

South Korea’s sandbox program was announced by the FSC in April. Only a month a later, Directional was approved for operation under the sandbox for its financial technology (fintech) solutions. 

Sandboxes have been established by several other countries, including the United Kingdom, Australia, Canada, Hong Kong, and Singapore, to spur innovation in fintech.

Shinhan Hits the Gas on Blockchain Development

Coindesk characterized Shinhan Bank as “aggressive” in its development of blockchain technology. In 2017, the banking group employed distributed ledger technology for gold bar verification. 

In May 2019, Shinhan revealed that it would use DLT to verify loans, eliminating paperwork, offering greater digital convenience to customers, and eliminating time-consuming manual processes.

Source: https://www.coindesk.com/ 


About Asia Blockchain Review

Asia Blockchain Review is the largest initiative for media and community building in Asia for blockchain technology. It aims to connect all blockchain enthusiasts on a regional scale and facilitate the technological foundation of blockchain through a range of group discussions, technical workshops, conferences, and consulting programs.

Our goal is to cultivate and encourage a collaborative community for our members to gather, share their experiences and endeavors in the blockchain space, and brainstorm the potential uses of blockchain technology.

Follow Asia Blockchain Review on:

Related Article
GSMA Hong Kong Expresses Positive Outlook for Blockchain
Paul Ulrich, Senior Policy Manager of APAC, GSMA Hong Kong, revealed that developing countries acros...

August 22, 2019

India’s Reliance Jio Unveils Its Massive Blockchain Network
Reliance Jio will install across India one of the largest blockchain networks in the world “with ten...

August 22, 2019

Mosendo, the Final Piece of the Cryptocurrency Payments Puzzle
We kick off the interview series with Clayton Roche, the Head of DeFi with Mosendo and the community...

August 21, 2019

Escalating Protests in Hong Kong Reinforce Bitcoin’s Safe Haven Status
Demand for Bitcoin is surging as more people look to reliable safe haven currencies in the face of e...

August 21, 2019

We provide information about Asia Blockchain Review latest activities as well as global blockchain news and research. Subscribe to our Newsletter now or Contact us