A brokerage company based in South Korea, Shinhan Financial Investment, is looking forward to creating a peer-to-peer platform using the blockchain technology for stock lending.
As reported by Econews, a South Korean news outlet, Shinhan Financial Investment is cooperating with a financial firm Directional to create this new platform that is going to remove the middleman from stock lending.
Directional is among the companies that work under the Financial Service Commission’s guidelines and offers stock lending as well as borrowing. Due to this, Directional has the ability to operate with new technologies not caring about the current regulations. The company was established in 2003 and has nearly 50 employees.
On the other hand, the Shinhan Financial Investment is a part of Shinhan Bank, South Korea’s oldest bank. It is also the second largest bank which greatly invests in cryptocurrency and blockchain.
This year, the Shinhan Bank released a blockchain network that assists in processing loans making the activity much more effective. it also uses blockchain in the system to reduce human errors. Reportedly, the bank was more blockchain-based projects coming soon.
South Korea has been a prominent figure in the regulation and implementation of crypto coins and blockchain. It is among the biggest markets in the sphere and crypto businesses are rapidly entering the country.