Shinhan Visa stablecoin deal will test token issuance, transfers, and redemption through Visa’s established payment platform in South Korea.
The strategic agreement marks Shinhan Financial Group’s second stablecoin partnership within four months.
The companies signed the agreement on August 24 at Shinhan’s headquarters in central Seoul. Their pilot seeks to develop a business model suited to South Korea’s financial market. The pilot covers issuance, remittance, and redemption functions.
Visa Platform Supports Broader Payment Trials
The partnership will test stablecoins across issuance, person-to-person transfers, and conversion back into cash. Shinhan and Visa will also examine their use for settling card payments.
Further work will cover artificial intelligence-powered payment models and expanded business-to-business and business-to-consumer payment services. Shinhan plans to connect Visa’s global network with key subsidiaries, including Shinhan Bank, Shinhan Card, and Jeju Bank.
Jin Ok-dong, chairman of Shinhan Financial Group, described the agreement as an extension of the companies’ existing relationship. “Through this agreement, we have expanded our long-standing partnership with Visa to the broader digital finance sector,” he said.
He added that Shinhan intends to “deliver differentiated financial experiences to our customers.”
Shinhan Extends Recent Solana Initiatives
The Visa agreement follows an April memorandum between Shinhan Card and the Solana Foundation. That partnership involved testing stablecoin payments using Solana’s layer-one blockchain.
Shinhan’s asset management division then partnered with the Solana Foundation, Etherfuse, and Orca in early August. That project will test a tokenized fund denominated in South Korean won.
In July, Shinhan joined OpenUSD alongside Samsung Electronics, Dunamu, and ten other Korean companies. The 140-company initiative aims to standardize a dollar-backed payment token supported by Visa and Mastercard.
Discussions leading to the latest Visa agreement began in April, when executives from both companies considered closer cooperation. Shinhan reported quarterly net income of 1.82 trillion won, equivalent to roughly $1.3 billion.
Korean Stablecoin Rules Continue Taking Shape
Shinhan is developing these payment capabilities before South Korea formally authorizes their commercial use. Lawmakers are advancing the Digital Asset Basic Act, covering stablecoins, exchange licensing, and crypto exchange-traded products.
In December, lawmakers and regulators proposed limiting won-backed stablecoin issuance in South Korea to consortia. Under that plan, commercial banks must hold ownership stakes of at least 51 percent.
The proposal responded to Bank of Korea concerns that non-bank issuers could weaken monetary policy and deposit protection. Its bank-led structure would place established lenders at the center of won-token issuance.
Rival KB Financial completed its own won stablecoin pilot on the Kaia blockchain in May. That trial reduced cross-border transfer times to approximately three minutes.
Shinhan’s agreement with Visa now adds another payment infrastructure test while the legislative framework remains under consideration.
