South Korean bitcoin exchange Coinone is leading a FinTech consortium with five financial institutions toward the development of blockchain solutions.
Announced this week, Coinone has roped in a handful of financial institutions to jointly develop financial services solutions using blockchain technology.
The consortium’s launch sees five members including Woori Bank, a nationwide banking institution; Shinhan Card, one of Korea’s largest credit card operators; Lotte Card, a finance company that also offers credit card services; Daishin Securities, an investment and securities banking company and; KICC, a prominent payment solutions provider in Korea.
The consortium has been promoting blockchain-based financial services in a changing industry that is increasingly reliant on digital commerce via internet-based services.
The announcement lays out a list of priorities for the Coinone-led FinTech consortium.
- The development and deployment of FinTech using blockchain.
- The establishment of new FinTech services for every consortium member in their own platforms.
- The coordination of communication with institutional and supervisory authorities.
In roughly translated statements, Kang Myung-hoon, CEO of bitcoin exchange Coinone stated:
Through the establishment of this financial consortium, we have taken a first step toward providing more strategic and systematic FinTech services. As a consortium of leading companies from each sector, it [FinTech solutions] are expected to be developed.
In particular, the consortium is looking to introduce new services and features to South Korean consumers such as micro-remittance using blockchain technology based on a foreign exchange model.
Participating members will also plan projects, develop and launch services according to their respective schedules, to ensure the rollout of blockchain-based FinTech solutions that meets the respective needs of each member.
The consortium also expects to add more companies including banks, payment providers, securities exchanges, card companies and new industry FinTech startups.
The consortium that features a bitcoin exchange, a retail bank and an investment bank working together comes at a time when a number of blockchain-based solutions are being implemented in South Korea.
Led by a technology-forward FinTech agenda set by the South Korean government, bitcoin exchanges will be regulated in the country this year. In 2016, South Korea announced a ₩3 trillion ($2.65 billion) financial package to develop the FinTech sector. Shinhan Bank, one of South Korea’s largest financial institutions, has launched a bitcoin-backed remittance service between the Korea-China corridor.
This year, South Korea announced its plans to launch a ‘full-scale’ blockchain pilot, a government-led initiative that will see the rollout of the world’s first insurance payments on a blockchain pilot in Seoul this year.
In March, South Korea’s most populous province of Gyeonggi-do, used a blockchain-based voting system to successfully register a community vote, with nearly 10,000 participating residents.
Featured image from Coinone.