South Korean-based, Shinhan Financial Investment is scheduled to offer a blockchain-focused peer-to-peer platform for lending stocks and potentially borrowing and loaning securities. The aforementioned will no longer require an intermediary reports Coin Desk.
The problem with traditional securities lending includes its inefficiency, high commissions and the lack of precise data, hence the reason for Shinhan’s reliance on blockchain.
The approach taken by Shinhan Financial Group is expected to make it easier for individual stock owners to lend their shares in an inexpensive and convenient manner.
This endeavor also includes Directional, a Korean firm that has received the green signal from the Financial Service Commission (FSC) for providing securities lending services, giving Shinhan an appropriate start.
Shinhan Financial Investment has always been in favor of blockchain technology reveals the news outlet. Two years ago, the firm supposedly used the technology for verifying gold bars and ever since, applied the same technology for interest swaps and cross-border payments.
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