Shinhan Financial Investment, a South Korean brokerage company, is planning to launch a peer-to-peer blockchain-based platform for stock lending services.
According to the local media platform Econews, the brokerage has tied with Directional, a financial services company, to develop the blockchain-based platform which will cut the need of any intermediary for stock lending.
Directional is one of the firms operating under the Financial Service Commission’s (FSC) sandbox program and is working to provide stock lending and borrowing services. This allows the company to work on innovative technologies with relaxation on the current regulatory frameworks.
Bringing blockchain to the mainstream
Shinhan Financial Investment is the arm of the country’s oldest bank, Shinhan Bank. The second-largest bank by asset in the country is also investing heavily on blockchain technology.
In May, the bank launched a blockchain-based platform to process loans, making the process efficient. The bank also implemented the decade-old technology last year in its day-to-day operation to minimize human errors. Few media reports also revealed that the bank introduced blockchain-based rate swap transactions.