Shinhan Bank, one of the largest banking institutions in South Korea, has partnered with Klaytn, a global blockchain platform developed by Kakao subsidiary Ground X.

According to an announcement on Monday, Shinhan Bank has joined Klaytn’s blockchain board and is becoming a co-member of the Klaytn blockchain. As part of the new partnership, Shinhan will also participate in the development of Klaytn-based digital services to support fintech innovation.

Founded in June 2019, Klaytn is a blockchain service provider focused on integrating blockchain solutions into enterprise-class infrastructure. Klaytn Blockchain is a hybrid blockchain network that combines the functions of public and private blockchains to ensure decentralized data and governance as well as low latency and high scalability. The Klaytn network implements the native KLAY token to incentivize engagement to maintain the growth of the Klaytn ecosystem.

According to the announcement, Shinhan will be the first traditional financial institution in Korea to join Klaytn’s board of directors, which now has more than 30 members. Shinhan is also the first of its kind among its membership, which includes tech companies like LG Electronics and big crypto companies like Binance.

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Shinhan’s entry to the board marks an important milestone in Klaytn’s growth as the bank’s stake will testify to Klaytn’s compliance, the announcement continued:

“Shinhan Bank is the first bank to join Klaytn’s efforts as a key decision maker. With Shinhan Bank by our side, we can reassure users that we are fully compliant. This also removes the risk of central bank non-compliance. “

Shinhan Bank has grown into a major commercial bank in South Korea involved in many initiatives related to digital currency and blockchain. In March, Shinhan completed a blockchain-based pilot platform for a central bank digital currency in partnership with LG Corporation’s IT service arm, LG CNS. The bank has also actively invested in the industry, with a strategic investment in the Korea Digital Asset Trust and participation in a $ 7.5 million financing round for Samsung-backed blockchain startup Blocko.