Shinhan Financial Group partners with Visa to build stablecoin-based payment systems in South Korea

Shinhan and Visa team up to explore stablecoin payments

South Korea’s Shinhan Financial Group has signed an agreement with Visa to collaborate on stablecoin-based payment systems. The partnership aims to build financial infrastructure using Visa’s stablecoin platform for issuance, remittance, and redemption of stablecoins—digital currencies designed to keep a steady value by being tied to traditional money like the U.S. dollar or Korean won.

The two companies will also work together to create a business model tailored for South Korea’s financial environment. They plan to test how stablecoins can be used in card payments, AI-driven payment models, and business-to-business (B2B) and business-to-consumer (B2C) transactions.

What the partnership will focus on

• Using Visa’s stablecoin platform to verify how stablecoins are created, sent, and exchanged.
• Designing a business model specific to South Korea’s financial rules and needs.
• Testing stablecoins in card payment settlements and AI-based payment systems.
• Expanding stablecoin use in B2B and B2C payment services.

Shinhan’s CEO comments on the collaboration

Jin Ok-dong, CEO of Shinhan Financial Group, said the agreement expands their long-standing partnership with Visa into digital finance. He stated that Shinhan will combine its financial expertise with Visa’s global infrastructure to create new financial models and improve customer experiences.

Shinhan’s recent moves in digital finance

Shinhan has been active in exploring blockchain and stablecoin technology. In April, its credit card subsidiary, Shinhan Card, partnered with the Solana Foundation to test stablecoin payment systems on the Solana blockchain—a decentralized network that processes transactions quickly.

Earlier this month, Shinhan’s asset management arm signed an agreement with the Solana Foundation, Etherfuse, and Orca to test issuing and distributing a tokenized fund denominated in Korean won. Tokenized funds are digital versions of traditional investments, like stocks or bonds, that can be traded on a blockchain.

What is confirmed

• Shinhan Financial Group and Visa have signed a strategic business agreement.
• The partnership will focus on stablecoin-based financial infrastructure.
• Shinhan will use Visa’s platform for stablecoin issuance, remittance, and redemption.
• The companies will jointly design a business model for South Korea.
• They will test stablecoins in card payments, AI payment models, and B2B/B2C transactions.
• Shinhan’s CEO, Jin Ok-dong, made a public statement about the partnership.
• Shinhan has previously worked with the Solana Foundation on stablecoin and tokenized fund projects.

What is still unclear

• The exact timeline for when these stablecoin projects will launch.
• Which specific stablecoins will be used or issued under this partnership.
• How South Korea’s upcoming Digital Asset Basic Act will impact these plans.

Why this partnership matters

This collaboration between a major South Korean financial institution and Visa could help bring stablecoins into everyday financial services. If successful, it may make payments faster, cheaper, and more accessible for businesses and consumers. The partnership also shows how traditional financial companies are exploring blockchain technology to modernize their services.

Sources

• The Block