Shinhan Financial Partners With Visa to Test Stablecoin Issuance and Transfers

South Korean banking giant Shinhan Financial has partnered with Visa to test stablecoin issuance, transfers and redemption through Visa’s platform, marking another major move by the financial institution into the digital-asset sector.

The partnership represents Shinhan’s second major stablecoin deal in four months, according to information shared on X by @coinbureau. The development comes as South Korea moves toward a regulatory framework for won-denominated stablecoins that could require banks to control at least 51% of stablecoin issuers.

The planned testing places a major South Korean financial institution alongside one of the world’s largest payment networks as both companies explore the use of blockchain-based digital money within established financial infrastructure.

Shinhan and Visa Test Stablecoin Functions

Under the partnership, Shinhan Financial and Visa will test several core stablecoin functions, including issuance, transfers and redemption on Visa’s platform.

Stablecoins are digital assets designed to maintain a relatively stable value against a reference asset, most commonly a fiat currency. Won-denominated stablecoins could provide a digital representation of the South Korean currency for use in blockchain-based payment and transfer systems.

Testing issuance would involve examining how stablecoins can be created within the platform, while transfers would focus on moving the digital assets between participants. Redemption refers to converting the stablecoin back into the underlying currency or corresponding value.

The partnership therefore covers multiple stages of the stablecoin lifecycle rather than focusing solely on transactions.

The information shared by @coinbureau did not provide details on the size of the test, its duration or whether the initiative has entered commercial deployment. The announcement is described as a test of the relevant stablecoin functions.

Shinhan Enters Second Major Stablecoin Deal in Four Months

The Visa partnership is Shinhan’s second major stablecoin-related deal in four months, according to the information provided.

The repeated involvement of Shinhan in stablecoin initiatives comes as South Korean financial institutions and policymakers examine how digital currencies can be incorporated into the country’s financial system.

Banks have traditionally played a central role in issuing and managing fiat currency-based financial products. Stablecoins introduce a digital structure that can operate on blockchain networks while maintaining a connection to conventional currencies.

For banks, participation in this area could involve developing infrastructure for issuance, custody, transfers and redemption. The latest partnership with Visa gives Shinhan an opportunity to test stablecoin functions within a payment network that already operates across international markets.

However, the information provided does not indicate that Shinhan has launched a publicly available stablecoin or that the Visa test represents a finalized commercial product.

South Korea Considers Bank-Control Requirements

The partnership comes as South Korea moves toward rules that could affect the ownership structure of companies issuing won-denominated stablecoins.

According to the information shared on X, the proposed framework could require banks to control at least 51% of won-stablecoin issuers.

Such a requirement would give traditional financial institutions a majority position in companies responsible for issuing stablecoins linked to the Korean won. It would also create a stronger connection between stablecoin businesses and regulated banking institutions.

The potential ownership requirement is significant because it could influence which companies are able to participate in South Korea’s future stablecoin market and how those businesses are structured.

The proposed rules remain part of a broader policy discussion around digital assets and stablecoins in South Korea. The information provided does not establish that the 51% requirement has already become law.

Stablecoins Move Closer to Traditional Payment Infrastructure

The Shinhan-Visa initiative illustrates the growing interaction between traditional financial institutions and blockchain-based payment technology.

Visa has been expanding its involvement in digital-asset infrastructure, while banks in several markets are exploring stablecoins as a potential component of future payment systems.

For Shinhan, testing issuance, transfers and redemption with Visa provides an opportunity to examine how stablecoin functionality could operate within an established payments environment.

The partnership also comes at a time when South Korean policymakers are considering how to regulate won-denominated stablecoins while maintaining oversight of the financial system.

With Shinhan’s latest initiative representing its second major stablecoin deal in four months, the bank is continuing to explore the technology as South Korea develops its regulatory approach.

The next stage will depend on the outcome of the testing process and the evolution of the country’s stablecoin rules. For now, the partnership remains a test of issuance, transfers and redemption through Visa’s platform rather than a confirmed commercial launch.

Writer: Victoria Hale
Technology & Blockchain Writer

Victoria Hale writes about blockchain technology, digital infrastructure, and the intersection of emerging technologies with finance. Her articles explore how new protocols and systems are shaping the evolving digital economy.

She prioritises clarity and accuracy when explaining technical developments to a general audience.