Korea’s Shinhan to Offer Blockchain-Based Securities Lending

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Shinhan Financial Investment will soon be offering peer-to-peer (P2P) stock lending via the blockchain.When the new service is introduced this year, individuals will be able to borrow and lend securities with other individuals directly, rather than going through an intermediary. The Economic News and other local Korean media reported the news.Securities lending and borrowing transactions are normally inefficient and expensive for anyone but larger investors. Commissions can be high and accurate information difficult to obtain. With a P2P service, individual owners of stock should be able to easily and cheaply lend their shares directly to others, earning a fee in the process. Individual short sellers will potentially be able to borrow stock from willing counterparties without having to pay exorbitant fees to large institutions.Shinhan Financial Investment, which is a brokerage related to the country’s second largest banking group by assets, is developing the capability in cooperation with Directional, a Korean…

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