Solana joins South Korea’s Shinhan Card to test stablecoin payments

Shinhan Card has entered a partnership with the Solana Foundation to develop and test stablecoin-based payment systems on blockchain infrastructure.

According to a press release from Shinhan Card, the company has begun an advanced proof-of-concept this year to simulate real-world payment interactions between customers and merchants using Solana’s testnet. The trial focuses on how stablecoin transactions can function in everyday retail settings while assessing system performance under practical conditions.

“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, outlining the company’s plan to assess how distributed ledger systems can support future payment frameworks.

A central part of the test involves verifying the security and stability of non-custodial wallets, which Shinhan Card is assessing as a requirement for scaling blockchain-based payments across its network. 

The company stated in its release that it is also exploring hybrid finance structures that combine elements of traditional financial systems with decentralized finance protocols.

Shinhan Card said it plans to develop its own DeFi service environment using oracle technology to connect real-world transaction data with blockchain systems. The company noted that this setup would support smart contract execution while maintaining operational stability through monitoring and governance mechanisms.

The firm will evaluate the results of the pilot in line with regulatory developments in South Korea and the Asia-Pacific region. South Korean lawmakers are currently working on the Digital Asset Basic Act, a comprehensive regulatory framework expected to be finalized within the year.

Activity across the country’s financial sector has increased ahead of the legislation. KBank, which partners with crypto exchange Upbit, has announced a collaboration with Ripple to test blockchain-based cross-border remittances, according to previous disclosures.

Government-led blockchain trials have also been expanding into public finance. The Ministry of Economy and Finance has selected a regulatory sandbox project that uses tokenized deposits to manage government spending, with a rollout planned for the fourth quarter of 2026.

According to the ministry, the system will first be deployed in Sejong City, where blockchain-based deposits will replace government-issued cards for official expenses. The framework allows authorities to predefine spending conditions such as time limits and usage categories, improving oversight compared to post-transaction reporting.

The ministry confirmed that nine banks, including Shinhan, are participating in the initiative to issue and manage tokenized deposits, linking the government’s Digital Budget and Accounting System with blockchain records. 

Officials said the trial is expected to reduce misuse of funds and shorten settlement times while maintaining stability by keeping deposits within the traditional banking system.