Korean banks are wiring stablecoin rails before the law lets them issue

Shinhan, a South Korean financial group, has agreed to test issuing, sending, and cashing in stablecoins on Visa’s payment platform.

This is Shinhan’s second major stablecoin partnership in four months as Seoul gets closer to creating formal rules for the stablecoin sector.

Shinhan builds on Visa’s platform

On August 24, at Shinhan’s headquarters in central Seoul, the two businesses signed a strategic business agreement.

Shinhan wants to run stablecoin functions through Visa’s existing platform and then create a business model that fits Korea’s market. The pilot covers issuing tokens, sending them to other people, and cashing them in.

The pair also plans to test the tokens in card payment settlement, build AI-powered payment models, and expand both business-to-business and business-to-consumer payment lines.

Shinhan said that it would connect Visa’s global network to its main subsidiaries, such as Shinhan Bank, Shinhan Card, and Jeju Bank.

Jin Ok-dong, who chairs Shinhan Financial Group, said, “Through this agreement, we have expanded our long-standing partnership with Visa to the broader digital finance sector.”

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