TL;DR:
- Shinhan Card signed a memorandum of understanding with the Solana Foundation to deepen stablecoin payment testing.
- The alliance will explore non-custodial wallets, DeFi-based services and a hybrid financial model combining TradFi with decentralized infrastructure.
- Shinhan is South Korea’s second-largest credit card issuer, holding a 16.9% market share according to KED Global.
Shinhan Card, one of South Korea’s largest credit card issuers, signed a memorandum of understanding with the Solana Foundation to advance testing of stablecoin payments and explore the use of non-custodial wallets.
The agreement is in part a deepening of a collaboration that had already produced early results: on April 9, both firms completed an initial proof of concept across six key areas, including blockchain-based peer-to-peer payments, digital asset-integrated payment infrastructure, cross-border remittances and settlements using stablecoins, and payment services with physical cards compatible with crypto wallets.
The new phase involves a more advanced proof of concept, aimed at assessing the commercial viability of stablecoin payments for both merchants and users seeking a better payment experience. According to the company, the previous proof of concept can serve as a model for connecting existing fiat payment systems with the crypto ecosystem, with the goal of generating new business models that increase customer convenience in the areas of payment and settlement.
Shinhan Targets a Hybrid Financial Model
The alliance also targets the development of what Shinhan calls a “hybrid financial model,” combining traditional finance infrastructure with decentralized protocols. Within that framework, the company plans to explore its own DeFi-related services incorporating blockchain oracles, technology used to connect information between off-chain and on-chain environments. It will also examine the execution stability of smart contracts, self-executing digital agreements whose conditions are written in code.
Shinhan currently holds second place in South Korea’s credit card market with a 16.9% market share, according to KED Global, a position it recently lost to Samsung Card, which reached 17.02% in March. Beyond Shinhan, Visa, Mastercard and BC Card are also exploring the use of stablecoins to enhance their payment and settlement systems. Visa, one of the most advanced cases, launched USDC settlement services on the Solana network.
