Major South Korean banks to provide data for DeFi platform

Four of South Korea's biggest banks will be providing data in support of a decentralized financial solution that will be supported by blockchain.

By · Jul 25, 2020 . 4min read

Source – Unsplash

Four of the biggest banks in South Korea have pledged to contribute to a blockchain-powered decentralized finance solution for foreign currency exchange rates.

Shinan Bank, IBK Bank, KEB Hana Bank, and Nonghyup will be a part of the project. The project will also involve Oracle’s Chainlink and South Korean fintech platform Center Prime. The banks will input real-time US Dollar-South Korean Won exchange rate data into Chainlink’s nodes. The DeFi service providers on this network will then have access to the data while creating smart contracts on the blockchain network.

Many Koreans are likely to become interested in DeFi as a result of this collaboration. Service providers will also be excited by the fact that the exchange rates will be provided by large banks. Earlier we reported on how South Korea is planning to introduce Blockchain in 7 key areas.

Center Prime released the following statement :

“This integration with Chainlink marks a major breakthrough for the Korean fintech industry. For the first time in history, applications will be able to access decentralized foreign exchange rates compiled by the best banks in Korea.”

Chainlink, on the other hand, had the following to say.

“I think banks can participate in the smart contract revolution and Blockchain. And then how they’re going to reinvent the global financial system is by the providing of various data, the providing of various services to these financial products.”

The Forex trading volume is currently 100x bigger than the total daily cryptocurrency trading volume, amounting to $6.6 trillion. It is possible that the DeFi space can now capture a small portion of this market. If it does so, there will be plenty of positive momentum generated in the crypto space.

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