Danal and Shinhan Bank Verify Korea's First USDC "Ultra-Fast, Ultra-Low-Cost" Remittance Process

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Danal has secured the country's first stablecoin-based "ultra-fast, ultra-low-cost" global remittance pipeline in partnership with Shinhan Bank.

Danal, an integrated payment business specialist, announced on the 6th that it successfully completed a proof-of-concept (PoC) for global remittances using stablecoins in January.

This test was conducted by linking Danal's blockchain and settlement network with Shinhan Bank's foreign currency remittance and settlement (bank account) systems, its regulatory and AML compliance framework, and Circle's stablecoin infrastructure, then transferring funds to the e-wallet of a local corporate customer in Japan. The main objective was to quantify the improvement in fees and foreign exchange processing time of the USD-to-USDC direct conversion process compared to existing remittance methods. The test results showed that a significant portion of fees was reduced and that deposits and withdrawals were processed in real time.

This demonstrates that using a blockchain network can drastically reduce the physical time and unnecessary costs compared to the existing Society for Worldwide Interbank Financial Telecommunication (SWIFT) network. In particular, it is significant in that Danal's process, based on direct linkage with Shinhan Bank, fully complies with domestic guidelines while also proving the high reliability and security of the service.

Based on this verified remittance route, Danal is promoting a second round of additional tests related to real-world payments and decentralized finance (DeFi). In line with the institutionalization of KRW stablecoins this year, the company plans to work with Shinhan Bank to further advance the settlement, foreign exchange, and distribution structure and accelerate the commercialization of the service. Furthermore, it intends to evolve this into a B2B trade remittance system and a swap and distribution model between domestic and overseas stablecoins, including USDC, thereby solidifying its position as a leading stablecoin company.

A Danal official said, "This PoC has proven that stablecoin remittances are a practical and efficient model that can dramatically improve the previously complex global trade transactions," adding, "Furthermore, once legislation is in place and the service area expands to KRW stablecoins, it will play a decisive role in promoting the global circulation of the won and enhancing its value."

The official added, "Going forward, we will continue to focus on collaboration with Shinhan Bank and actively leverage our partnership network with proven blockchain companies to establish a next-generation financial standard that is accepted anywhere in the world."

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