Aug 3, 2019 19:03 UTC
Aug 3, 2019 at 19:03 UTC
South Korean Bank to Use Blockchain For Stock Lending
The Shinhan Bank, which is the oldest bank of South Korea, has reportedly started working on a new stock lending platform that makes use of the distributed ledger technology. This development was reported by a local news outlet recently. If successful, this will lead to the creation of a blockchain-based platform to facilitate stock lending for users and will represent yet another use case of this wondrous technology.
At the end of May this year, Shinhan Bank had also come out with a blockchain-based platform for normal lending, in order to cut down on costs and increase operational efficiencies in the lending process, while also making it speedier. This platform had been introduced to allow members of the public to easily apply for loans online. The blockchain platform ensured that they would be capable of getting the credit they desired without undergoing any face-to-face interaction. As Nelson Chu, the founder and CEO of Cadence, explained, the securitization market with regard to private credit had been in “desperate need of innovation” and this development reflects a step in the right direction.
Cadence is a blockchain-oriented alternative investment provider from the United States, and it has already come out with an investment platform for debt to make the whole process much more efficient and transparent than it currently is. This will help revitalise the private debt market and will also give companies with debt to grow their businesses to a huge extent.
Blockchain has a multitude of use cases spanning across several different industries and areas, ranging from supply chain management to health-care, governance to digital identity and more. Of late, it seems its implications in the borrowing and lending markets are also becoming more relevant than ever.