One of South Korea’s largest banks, Shinhan has moved into a partnership with OmiseGo (OMG), an Ethereum-dependant financial platform. In January, Shinhan also revealed it was working on a vault and Bitcoin wallet which could be used by banks to safely store Bitcoin.
Shinhan is the second biggest bank in South Korea that started to provide banking services to cryptocurrency exchanges when the country’s largest bank denied them.
This is huge for OmiseGo and I believe for the entire Ethereum community.https://t.co/gzzKsNPfVk
— Joseph Young (@iamjosephyoung) 6 April 2018
Speaking of the partnership OmiseGo CEO, Jun Hasegawa said:
“Omise and OmiseGo are working to revolutionize the way digital value moves globally, with an end goal of creating a platform that facilitates a decentralized economy. The OMG platform, using the Plasma architecture, is being built as a public network that is powered by Ethereum. The first phase of the wallet SDK was recently released and is available for anyone to use. We want to make it easy for those who need online asset exchange as part of their business to connect seamlessly to the OMG Network.”
Shinhan had always been aiming to bring decentralized options to its financial system and this statement declares that Shinhan will be teaming up with OMG to integrate blockchain technology in various banking orders.
Shinhancard, a card service by the bank will be using the OmiseGo technology to become more sophisticated and offer the card customers with decentralized payment options.
“The MoU establishes a framework for closer collaboration between each party; leveraging Omise’s broad portfolio of payment technology and solutions, and OmiseGO’s server and mobile SDKs that have been made publicly available for the purpose of onboarding e-wallet providers,” the Omise team announced.
Why is the Omise-Shinhan partnership a blow to Ripple?
Shinhan Bank and Woori Bank announced that they will support digital currencies despite Kookmin’s, the country’s largest bank, the crackdown on cryptocurrencies. In December last year, Ripple announced a partnership with the Japan Bank Consortium, a coalition of 61 Japanese banks. The Japan Bank Consortium then launched a new Ripple Pilot with Shinhan and Woori. This was the first initiative that involved money transfers from Japan to South Korea through RippleNet.
Emi Yoshikawa, director of Partnerships at Ripple said:
“The Japan Bank Consortium’s pilot with Woori Bank and Shinhan Bank brings us closer to sending money in an important corridor.
“The use of RippleNet to send cross-border payments reinforces that financial institutions are ready to provide a modern payments experience and enable to the Internet of Value.”
During this time period, Shinhan announced it had held successful tests with RippleLabs using the RippleNet network and the payment tool, xRapid for cross-border transactions.
The relationship between Shinhan and Ripple was going strong and it was even believed that the two would soon rely on each other and strike a deal until the Shinhan-OmiseGo partnership was revealed.
It looks like Shinhan was no longer interested in Ripple and therefore opted for the Ethereum blockchain. If only Ripple had successfully convinced Shinhan, it would have kept using Ripple’s payment tools to power transactions.
Ripple had not yet released a statement regarding the matter.