NongHyup (NH) Bank, a major South Korean bank, is collaborating with Ethereum infrastructure provider Fireblocks to develop a blockchain-based system to streamline tax refunds and value-added tax (VAT) processes. Through a recent Memorandum of Understanding (MoU), NH Bank is set to use Fireblocks’ Tokenization Engine for this project.
Key Highlights:
- Partnership Goals: The MoU with Fireblocks aims to explore how digital assets can improve NH Bank’s tax refund and VAT processes, including transfer taxes.
- Blockchain Benefits: According to NH Bank’s president, Lee Seok-yong, this initiative marks a major step towards delivering blockchain-powered financial services. NH Bank also plans to add other digital asset services in the future.
Blockchain in Banking
NH Bank joins a growing list of global banks adopting blockchain to enhance efficiency and reduce errors in their operations. For example, South Korea’s Shinhan Bank is also testing blockchain to minimize mistakes and increase productivity.
South Korea’s Crypto Leadership
As one of the biggest cryptocurrency markets worldwide, South Korea has introduced strict regulations to protect crypto users, home to major exchanges like Bithumb and Upbit. The country leads in crypto legislation and consumer protection laws.
Michael Shaulov, CEO and Co-founder of Fireblocks, shared that this partnership is a significant step for financial institutions to adopt secure blockchain solutions beyond tax refunds.
Fireblocks’ Reach
Fireblocks, which has handled over $6 trillion in crypto transactions, serves exchanges, banks, trading desks, and custodians. This tax pilot with NH Bank is only the beginning, as both companies aim to explore more blockchain-driven projects globally.