South Korea’s Toss Bank Teams Up With Solana for Stablecoin Remittances

The Solana Foundation is making another major push into traditional finance (TradFi) by partnering with Toss Bank, South Korea’s largest digital bank. The move intends to test Solana-based cross-border remittances and stablecoin settlements in South Korea.

With this collaboration, Toss Bank is marking its entry into the blockchain space. The alliance will begin with a proof of concept, expanding later into payments, digital assets, and tokenized real-world assets (RWAs).

Toss Bank tests stablecoin payments with Solana

South Korea’s Toss Bank has reportedly announced a strategic partnership with Solana Foundation as part of its new journey into blockchain. With the help of Solana’s infrastructure, the bank is testing a blockchain-based cross-border transaction system.

The bank has signed a Memorandum of Understanding (MoU) with the Solana Foundation. The move intends to explore the ways in which the blockchain network can support global remittances and settlements. Following the initial phase of testing the Solana network’s capabilities, the bank will bring overseas partners and review key compliance standards like anti-money laundering (AML) and know your customer (KYC).

According to Park Jin-hyun, Head of Strategy at Toss Bank, the alliance will help establish new standards for international payments. Park noted,

Launching a remittance proof of concept in phases

Notably, both platforms are expected to initially work on a proof of concept (PoC) under this collaboration. Firstly, they will test if the Solana blockchain is suitable for stablecoin transfers and other financial services.

It is important to mention that Toss Bank’s experience as a digital bank will have an extra benefit for its new blockchain venture. The bank will build the user side of the remittance service, leveraging its experience. On the other hand, Solana will provide the blockchain infrastructure to enable faster and more efficient cross-border payments.

Afterwards, the project will move into a deeper phase. The bank will include overseas partners and check regulatory compliance requirements, including AML and KYC. Thus, on a long-term basis, the collaboration will evolve into a broader project that focuses on blockchain-based financial services. The bank stated,

Solana price rises 4% in a week

In response to this Toss Bank partnership, the Solana price has seen a 4% price increase in the last week. Despite this uptick, the SOL price is still down by about 9% in the last month.

However, short-term sentiment is largely positive, in line with the short-term bullish momentum. The 24-hour trading volume has soared by around 15%, hitting $2.14 billion.