Shinhan Bank announced on October 7 that it will participate in a commissioned test of Infinite Block's blockchain-based prepaid electronic payment issuance and record management solution.
The test focuses on real-time verification of the balance of prepaid electronic payment methods and the status of prepaid deposits managed separately by financial institutions. This initiative aims to enhance transparency in deposit management following the amendment of the Electronic Financial Transactions Act, which mandates 100% separate management of prepaid deposits.
The solution allows issuing institutions to provide real-time balance information through the deposit financial institution when issuing electronic payment methods such as pay money, while Infinite Block records and manages this information on the blockchain. This enables real-time comparison of issued balances and deposit amounts, ensuring that the issued balance does not exceed the trust and deposit amounts.
Shinhan Bank decided to participate in the commissioned test after an internal review last month and plans to conduct the demonstration over the next year. Through this participation, the bank aims to attract prepaid deposits and establish a foundation for engaging in new businesses based on digital assets and blockchain.
Shinhan Bank President Shin Hak-ki stated, “We will enhance the transparency and reliability of prepaid deposit management and explore the potential for innovation in financial services using blockchain technology.”
* This article has been translated by AI.
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