One of South Korea’s largest financial institutions, Shinhan Bank, has penned an agreement with blockchain firms Ground X and Hexlant. The goal is to create a blockchain security system by developing a Private Key Management System (PKMS). The system aims to secure customers’ personal data and transaction records. In the last few months Shinhan Bank has tested blockchain credentialing for loan applications and a blockchain-based derivatives system.
Ground X is the blockchain group of South Korea’s mobile messaging firm Kakao. According to The Korean Times, Ground X provide the blockchain platform for the project. It is unclear, however, whether that refers to Ground X’s Klaytn platform. Hexlant, on the other hand, is responsible for the encryption key management process. And Shinhan Bank will provide security technology and the key recovery process.
Pilot tests are expected to start in October.
An unnamed Shinhan Bank official commented on the deal: “Blockchain technology has gained attention from the financial sector for its advantages, but financial firms have experienced difficulties in applying the technology to their system.”
“Shinhan Bank will provide a convenient, user-friendly interface under the deal with Ground X and Hexlant.”
According to Decenter, a local crypto website, a Hexlant official said: “The most difficult part for blockchain companies is the blockchain key management part. This agreement will provide the most secure enterprise wallet security technology.” The company already provides wallet solutions to 20 corporate and institutional customers.
However, there is another angle to the deal.
Under the terms of the agreement, the three parties will apply PKMS to REDi’s energy data trading platform. REDi is supported by Ground X’s Klaytn and Shinhan Futures Lab. Other participants include Hyundai Renewable Lab and wind and solar company Pacifico Energy Korea.
Although REDi initially aims to support data trading, the firm intends for the platform to eventually include P2P energy trading. The company was founded in 2018 and completed an ICO in April 2019 which raised $4 million.