Report: Shinhan Bank Subsidiary is Working on Blockchain-Based Lending PlatformAuthor: Jimmy AkiLast Updated: 04 August 2019 Earlier this week, local news medium Econonews reported that Shinhan Financial Investment is working on the launch of a blockchain-based, peer-to-peer (P2P) stock lending platform. The report detailed that the service will be introduced before the year draws to a close, and it will bring separate parties together in stock lending transactions.Essentially, the service will cut out the intermediary, allowing investors to borrow and lend stocks personally. Over time, the process of lending and borrowing securities has been seen as overly expensive and inefficient, with majorly large, institutional stock trading investors being able to bear the costs. Commissions can skyrocket, and obtaining accurate information can be a drag as well.However, with a P2P service, individual stock owners will be able to lend their holdings to one another on a fast and cheap platform, while also earning their commissions in the process. It is also especially good news for individual short sellers, as it means that they will be able to borrow stocks from counterparties that are willing to lend them, all without having to make the customary massive payment.Shinhan Financial Investment is the brokerage arm of the Shinhan Bank, the oldest banking institution in South Korea, and the second-largest in the country by the total worth of assets. According to the report, the brokerage firm will be working to develop the blockchain stock lending platform with Directional, a company based in the country that has been permitted by the Financial Service Commission (FSC) to make stock lending services available.The approval received by Directional was a part of the sandbox initiative pout fort by the government of South Korea. With this initiative, the government is looking to temporarily lift the regulations on the testing of some innovative services and technological concepts. The financial market sandbox that allowed Directional to operate in this market was announced back in April, but for now, there is no official launch date for the Shinhan platform yet. Shinhan Bank has also been making some giant strides in the blockchain sector as well. Back in May, the bank launched a blockchain-based lending platform that helped improve the speed of the loaning process. According to a report on the platform by Yohanp, the blockchain-powered loan system helped optimize both time and cost efficiency with loan facilitation, as it allowed loanees to file their applications and get their loans completely online. With the use of the blockchain, the lending platform would be able to draw on the banks affiliated institutions to help improve confirmation and verification. The system would also generate one-time passwords for users, so they can communicate, access the network, and get all the information required to issue loans. The bank has, however, been a tad more careful with its use and association with crypto assets. While it has made a habit of tracking the government’s stance on the market, it has managed to steer clear of the assets thus far. It was a tad positive on crypto for a while, as it reportedly accepted deposits from cryptocurrency exchanges and investors who were turned away by other banks. However, in light of increased scrutiny from the government, it has increased its monitoring of all accounts affiliated with exchanges and is now adhering to some strict Know-Your-Customer (KYC) standards.