# South Korea's Shinhan Bank partners with Kakao's Ground X and Hexlant to develop blockchain-based security system By Charissa Echavez Canonical URL: https://www.tokenpost.com/news/technology/3032 Published: 2019-08-15T03:48:08.000Z Updated: 2019-08-15T03:48:23.000Z Section: Technology > Shinhan Bank, the oldest bank in South Korea, has partnered with two fintech companies to develop a blockchain-based security solution. Shinhan Bank, the oldest bank in South Korea, has partnered with two fintech companies to develop a blockchain-based security solution. According to local [news outlet]() The Korea Times, Shinhan Bank has signed a memorandum of understanding with financial technology startup Ground X and blockchain developer Hexlant to build a Private Key Management System for its banking services. Under the deal, Ground X, which is the blockchain subsidiary of South Korean messaging giant Kakao, will provide a blockchain-based platform. Meanwhile, Hexlant will develop the infrastructure that will feature an anti-cracking program for the platform. “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,” a bank official said. “Shinhan Bank will provide a convenient user-friendly interface under the deal with Ground X and Haxlant.” The new system could see testing as early as this coming October. The partnership follows after [Shinhan Financial Investment](), the brokerage unit of Shinhan Bank, reportedly signed an agreement with financial service provider Directional to develop a blockchain-based, peer-to-peer (P2P) stock lending platform. The new service will allow people to borrow and lend securities directly from other individuals, bypassing an intermediary. In May, Shinhan Bank also revealed a [blockchain-based platform]() to hasten loan processes. It uses blockchain technology to verify loan application and documents with no face-to-face interaction, in a bid to improve efficiency and processing time while lowering associated administrative costs. [TokenPost]() | info@tokenpost.com ## Links in this article - [news outlet](http://www.koreatimes.co.kr/www/biz/2019/08/126_273950.html) - [Shinhan Financial Investment](https://tokenpost.com/South-Koreas-Shinhan-Financial-Investment-to-develop-blockchain-based-stock-lending-platform-2908) - [blockchain-based platform](http://tokenpost.com/Koreas-Shinhan-Bank-launches-blockchain-based-lending-system-2001) - [TokenPost](https://www.tokenpost.com)