Shinhan taps Visa to test stablecoin issuance in South Korea

Shinhan and Visa Agree to Build Stablecoin Infrastructure

Shinhan Financial Group, one of South Korea's five largest financial conglomerates, has signed a strategic agreement with @Visa to test stablecoin issuance, remittance, and redemption on the payment giant's enterprise platform, according to Korean outlet FNNews. The deal was confirmed on Wednesday and marks a notable step by a top-tier Korean financial institution into digital asset infrastructure.

Shinhan said it will use Visa's stablecoin platform to verify issuance, remittance, and redemption, and jointly design a Korea-specific business model. The two will also test the application of stablecoins in card payments, AI-based future payment models, and B2B and B2C payment businesses.

Shinhan plans to combine the capabilities of its major subsidiaries, including Shinhan Bank, Shinhan Card, and Jeju Bank, with Visa's global payment network and digital technology.

Regulatory Backdrop and Broader Blockchain Push

The agreement arrives as South Korea presses ahead with sweeping digital asset legislation. South Korea's ruling Democratic Party has proposed a Digital Asset Basic Act that would create a comprehensive legal framework for issuing, trading, holding, and supervising digital assets. The bill would require authorization and strict reserve, capital, and operational standards for issuers of stablecoins tied to fiat currencies or real-world assets. South Korea's Ministry of Economy and Finance announced plans to advance the Digital Asset Basic Act in the second half of 2026.

The Visa deal is not Shinhan's first move in blockchain. The group recently completed a four-party tokenized won fund test alongside the Solana Foundation, Etherfuse, and Orca, underscoring its broader push to integrate distributed ledger technology across multiple business lines. The project adds tokenized investment products to the group's blockchain activity at a time when several Shinhan businesses are separately testing payments, settlement, and digital asset infrastructure.

Shinhan and Visa are developing the new payment infrastructure while South Korean policymakers continue negotiations over the rules that would govern locally issued stablecoins.

Sources:
The Block: South Korea's Shinhan to use Visa's stablecoin platform
CoinDesk: South Korea proposes Digital Asset Basic Act with stablecoin rules
Crypto.news: Shinhan Financial taps Visa for stablecoin payments and settlement push