The Korean company Shinhan Financial Investment, a division of Shinhan Bank, will present a new service for P2P lending using blockchain this year.
According to The Economic News and other local media, thanks to the new lending service, individuals will be able to borrow and provide loans to others directly, and not through intermediaries.
Usually, operations on lending and borrowing securities are not cheap for everyone, except for large investors. However, thanks to the P2P service, the owners of shares will be able to easily and cheaply provide their shares directly, receiving a fee for this, and the owners of short positions will be able to borrow shares from counterparties without paying exorbitant fees to large institutions.
The brokerage company Shinhan Financial Investment, associated with the assets of the second largest banking group in the country, is developing a new service in cooperation with the Korean company Directional, which was allowed by the Financial Services Commission (FSC) to provide stock loans and loans within the regulatory “sandbox”.
Shinhan Bank is actively engaged in the implementation of blockchain-based solutions. For example, recently a subsidiary of Shinhan Card bank received a patent for a payment blockchain system and announced the launch of a credit transaction service using blockchain. In May, it was also reported that Shinhan Bank will use blockchain in lending, and last year the financial organization stated that it would use blockchain to optimize the work of employees