South Korea’s oldest bank, Shinhan Bank, is developing a distributed ledger technology (DLT)-enabled stock lending platform, local media Econonews reports on Aug. 1.
Blockchain-based stock lending
Per the report, Shinhan Financial Investment signed an agreement with financial services company Directional to develop a blockchain-based stock lending service on May 28. Personal stock lending is part of a broader development of innovative financial services that are currently being pursued by the company.
Not the first Shinhan Blockchain-based Service
At the end of May, Shinhan Bank also launched a blockchain-enabled lending platform to boost cost and time efficiencies in the lending process, reportedly enabling the public to apply for loans online and get their credits without face-to-face interaction. Cadence’s founder and CEO, Nelson Chu explained that the securitization market for private credit has been in “desperate need of innovation.”
As Cointelegraph reported last month, Cadence, an American blockchain-based alternative investment provider, launched an investment platform for debt to bring more transparency and efficiency to the private debt asset class in order to help companies grow their businesses.
In May, reports started circulating that Kuala Lumpur-based Bursa Malaysia, the country’s stock exchange, was working on a blockchain-enabled security borrowing and lending proof-of-concept.