Shinhan Bank in Korea and Standard Bank in South Africa are to test the use of stablecoins for cross-border remittances using the decentralised public ledger Hedera Hashgraph.
Under the Proof of Concept, both banks will issue new stablecoins pegged to their respective national currencies and allow users to purchase the stablecoins for international payments with users of the other bank.
Utilising the Hedera Token Service (HTS) and Hedera Consensus Service (HCS), the project aims to test the issuance and distribution of stablecoins, applied to a financial use case that typically suffers from high fees, longer waits and absence of tracking feature.
In a statement, Shinhan Bank says: “Joining the Hedera Governing Council this spring has allowed us to significantly accelerate our engagement with other global industry leaders to leverage the power of Hedera’s fast, fair, green public distributed ledger. Cost-effective, efficient international remittance is the perfect, real-world financial use case to build on a network that provides Hedera’s speed and low cost.”