Yesterday
Korea Times reported that Korea’s Shinhan Bank is using blockchain, including for internal functionality. The bank adopted blockchain including smart contracts for Interest Rate Swaps (IRS) on November 30th.
IRS are types of derivatives that usually enable parties to swap exposure to a variable interest rate with a fixed interest rate. Hence they’re used for hedging. The derivatives market reached $612 trillion last year (source: BIS) and is three times the size of the combined global equities and bond markets.
“Prior to the blockchain-based process, there had been no standardized rules governing keeping and managing financial records, a reason why market participants had to rely on their own records which often times led to errors despite the cross-checking process requirement,” a Shinhan official said.
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