Shinhan Card, one of South Korea's largest credit card companies, announced Thursday that it has signed a partnership with Solana Foundation to build stablecoin payment systems on the Solana blockchain.

As part of the partnership, Shinhan Card is conducting an advanced proof of concept this year, designed to focus on real-world payment scenarios between customers and merchants on Solana's testnet, according to a press release. 

"Building on Solana, we plan to closely examine the practical applicability of blockchain technology and proactively explore next-generation financial models," said Kim Young-il, executive vice president of Shinhan Card. 

One of the core elements of the PoC is validating the security and stability of non-custodial wallets to enable Shinhan to deploy the technology at scale. The collaboration is also set to explore "hybrid finance models" that combine the reliability of traditional finance with the efficiency of DeFi.

"Shinhan Card plans to build its own DeFi service environments utilizing oracle technology — secure data bridges that connect real-world transaction information with blockchain networks," the press release said. "[This] will enable the deployment of smart contracts while ensuring operational stability through robust monitoring and governance frameworks."

Local regulations

Shinhan plans to evaluate the results of these initiatives in line with the developing regulatory landscape in South Korea and the broader Asia-Pacific region. South Korean legislators are currently developing the Digital Asset Basic Act, an all-encompassing set of rules for the digital asset sector, which is widely expected to be finalized within this year.

In anticipation of the Digital Asset Basic Act, many South Korean financial institutions have recently joined hands with global blockchain and crypto companies. Upbit's partner bank, KBank, announced its partnership with Ripple to test cross-border remittances on the blockchain.