Shinhan Financial Group, one of South Korea’s five largest financial conglomerates, has entered a strategic agreement with Visa to develop stablecoin payment infrastructure and expand into artificial intelligence-driven payment services. The Seoul-based group plans to use Visa’s enterprise stablecoin platform to verify core processes including issuance, remittance and redemption, while designing a model adapted to the South Korean financial system.

Partnership Focuses on Full Stablecoin Lifecycle and Settlement

Under the deal, Shinhan and Visa will examine how stablecoins can be integrated into the group’s financial services. Initial efforts center on testing the complete stablecoin lifecycle on Visa’s infrastructure before creating services that meet local regulatory and operational requirements. The companies also intend to run pilot projects that incorporate stablecoins into card payment settlement systems.

The collaboration extends to AI-based payment models and the expansion of both business-to-business and business-to-consumer transaction services. Shinhan will involve key subsidiaries, including Shinhan Bank, Shinhan Card and Jeju Bank. Visa will contribute its international payment network and digital payment technology.

Shinhan Financial Group Chairman Jin Ok-dong described the agreement as an expansion of the long-standing relationship with Visa into the broader digital finance sector. The partnership marks the first formal adoption of Visa’s enterprise stablecoin infrastructure, which launched in July, by a top-tier South Korean financial group. It positions Visa ahead of competitors in bank-native stablecoin settlement capabilities within the country.

Builds on Existing Digital Asset Initiatives

The Visa agreement builds on earlier experiments by Shinhan subsidiaries. In April, Shinhan Card worked with the Solana Foundation to test stablecoin payments on the Solana testnet, evaluating transaction performance, non-custodial wallet security and hybrid connections between traditional payment systems and decentralized tools. That effort also aligned with a government program involving nine Korean banks testing tokenized bank deposits for public spending, with a planned rollout in Sejong City in the fourth quarter of 2026.

Earlier in August, Shinhan’s asset management arm signed a four-party memorandum with the Solana Foundation, Etherfuse and Orca to trial the issuance and distribution of a Korean won-denominated tokenized fund. Shinhan has additionally pursued institutional blockchain work through agreements with the Canton Foundation and an investment in Digital Asset, the company behind the Canton Network. Shinhan manages approximately 134 trillion won, or about $100 billion, in assets under management.

Regulatory Context in South Korea

The partnership advances as South Korea develops its Digital Asset Basic Act, a framework expected to set rules for stablecoins, virtual asset service provider licensing, disclosures, internal controls and potential spot cryptocurrency exchange-traded funds. Policymakers are also addressing cross-border stablecoin transactions.

A key point of discussion remains the structure for Korean won-backed stablecoin issuance. The Bank of Korea has maintained that banks should lead in the initial stage through consortium arrangements involving regulated financial institutions, with ongoing talks covering issuer eligibility, reserve oversight and regulatory authority.

Shinhan’s latest move with Visa adds to a series of steps by the group to prepare payment, settlement and tokenized product capabilities ahead of clearer domestic rules for digital assets.