Shinhan Card has teamed up with the Solana Foundation to pilot stablecoin payments on Solana’s blockchain, launching an advanced proof-of-concept that simulates everyday customer-to-merchant transactions on Solana’s testnet. What the trial covers - The PoC recreates real-world retail interactions to see how stablecoin payments perform under practical conditions and to benchmark system throughput and stability. - A key focus is on non-custodial wallets: Shinhan Card is testing security and operational resilience as a prerequisite for scaling blockchain-based payments across its network. - The project will also explore hybrid finance models that blend traditional banking features with decentralized finance (DeFi) protocols. Shinhan’s plan and tech stack “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. The company says it will develop a DeFi service environment that uses oracle technology to feed real-world transaction data into blockchain systems, enabling smart contract execution while retaining monitoring and governance controls to preserve operational stability. Regulatory and regional context Shinhan will evaluate pilot results in step with regulatory developments across South Korea and the Asia-Pacific region. South Korean lawmakers are drafting the Digital Asset Basic Act, a comprehensive framework expected to be finalized later this year, which is spurring increased fintech and crypto activity in the country. Related industry and government moves - Financial-sector activity is accelerating: KBank, a partner of crypto exchange Upbit, has previously announced a collaboration with Ripple to test blockchain-based cross-border remittances. - Government-backed blockchain trials are also expanding into public finance. The Ministry of Economy and Finance selected a regulatory sandbox project to use tokenized deposits for managing government spending, with a rollout targeted for Q4 2026. - The system will debut in Sejong City, replacing government-issued cards for official expenses and allowing authorities to predefine spending conditions (time limits, usage categories) to improve oversight. - Nine banks, including Shinhan, will participate in issuing and managing the tokenized deposits, linking the government’s Digital Budget and Accounting System to blockchain records. Officials expect the setup to reduce fund misuse and shorten settlement times while keeping deposits inside the traditional banking system. Why it matters The Shinhan–Solana test is a notable example of a major traditional payments firm actively probing blockchain primitives—stablecoins, non-custodial wallets, oracles and smart contracts—for mainstream payment use cases. Its outcomes, especially amid evolving regulation in South Korea, could influence how quickly financial institutions integrate crypto rails into everyday commerce. Read more AI-generated news on: undefined/news