Shinhan Financial Group and Bank of Korea Join Forces to Boost Deposit Tokens... Pilot Program for Real-World Transactions Accelerated

Shinhan Financial Group is partnering with the Bank of Korea to promote the activation of deposit tokens. The group plans to actively participate in the second phase of Project Han-Gang’s pilot program to verify the practical usability of deposit tokens, and will also strengthen cooperation for digital transformation in the public sector, including the future introduction of digital vouchers linked to government subsidies.

Jin Okdong, Chairman of Shinhan Financial Group (left), and Lee Changyong, Governor of the Bank of Korea, pose for a commemorative photo on the morning of the 1st at the Bank of Korea headquarters in Jung-gu, Seoul, after signing a "Memorandum of Understanding for Innovation in Digital Financial Infrastructure Based on Deposit Tokens." Provided by Shinhan Financial Group

In this regard, Jin Okdong, Chairman of Shinhan Financial Group, and Lee Changyong, Governor of the Bank of Korea, signed a memorandum of understanding on "Deposit Token-Based Digital Financial Infrastructure Innovation" at the Bank of Korea headquarters in Jung-gu, Seoul, on the morning of April 1st.

This agreement is intended to ensure the successful implementation of "Project Han-Gang," the second pilot project for real-world transactions using deposit tokens, led by the Bank of Korea. Based on the achievements from the first round of testing, Shinhan Financial Group became the first among the Bank of Korea's partner companies to sign a business agreement for the second phase. The group plans to carry out close practical cooperation with the Bank of Korea based on this agreement.

Shinhan Financial Group will review the potential for real-life applications of deposit tokens using its various financial lifestyle platforms, such as payment for the delivery app "DDangGyeoYo" and the payment of travel insurance premiums through Shinhan EZ General Insurance.

In addition, the two institutions have decided to introduce digital vouchers to facilitate the issuance and settlement of deposit tokens linked to government subsidies. Through this initiative, they aim to enhance transparency in fund disbursement and develop citizen-centered services using programmable money (digital currency designed to allow transactions to be executed automatically when certain conditions are met). The goal is to launch innovative financial products and accelerate digital transformation in the public sector.

Shinhan Financial Group intends to continuously advance the deposit token-based infrastructure to support digital transformation in various industries such as capital markets and trade finance, while also strengthening its digital competitiveness in the global financial market.

Chairman Jin Okdong stated, "For the digital asset market to grow in a healthy manner, technological innovation as well as the core financial values of stability and trust are of utmost importance. Shinhan Financial Group will do its best to build a digital financial infrastructure that the public can use with confidence, working closely with the Bank of Korea based on the technological capabilities we have systematically developed over time."

This content was produced with the assistance of AI translation services.