From Artworks to Baseball Players... NFTs Even Banks Have Their Eyes On

Shinhan Financial, NFT Inquiry Service and MOU Signing
KB, Hana, and Woori Financial Also Exploring NFT-Related Businesses
Expectations Rise with Next Government's Blockchain Promotion Policy

[Image source=EPA Yonhap News]

[Asia Economy Reporter Minwoo Lee] Financial institutions, including commercial banks, are increasingly entering the non-fungible token (NFT) sector. This move aligns with the new government's policy to promote blockchain technology.

According to the financial industry on the 29th, Shinhan Financial Group launched an 'NFT Gallery' service on its integrated financial platform 'Shinhan Plus.' This feature allows customers to check their holdings of NFTs issued by Shinhan Financial Group. By linking with Kakao's cryptocurrency wallet 'Klips,' convenience and accessibility have been further enhanced compared to before. NFTs are virtual assets that prove ownership of digital assets through blockchain technology. Recently, trading of artworks, videos, songs, and other items created in NFT form has been actively conducted.

Shinhan Financial has been utilizing NFTs in various services for some time. Shinhan Bank has been issuing NFTs targeting Korea Baseball Organization (KBO) players since February. Shinhan Card also launched the MyNFT service earlier this year, providing NFT issuance and inquiry functions. Additionally, it recently signed a memorandum of understanding for strategic equity investment and business cooperation with Crossangle, the operator of 'Zzangle,' the only domestic virtual asset evaluation and disclosure platform. Through this, they plan to pursue ▲development and promotion of digital asset-related services within both companies' platforms ▲development of new services combining financial and digital asset data ▲mutual cooperation in discovering and promoting blockchain companies with innovative technologies.

Hana Financial is also showing interest in NFTs. Initially, it is using NFTs in various events. Recently, in collaboration with 'XXBLUE,' a provider of art-based digital content, they are conducting an NFT artwork giveaway event for users of the mobile application 'Hana One Q.' This aims to offer diverse digital content experiences targeting customers interested in digital assets and art investment. XXBLUE is a subsidiary of Seoul Auction, an art auction company with which Hana Bank signed a business agreement in February.

Additionally, at the end of last year, KB Kookmin Bank developed a digital wallet for NFT storage on a trial basis, and Woori Bank is also focusing on building a platform for NFT issuance.

The reason financial companies are entering the NFT market is interpreted as a strategic move to expand virtual asset-based financial services in the future. Since the next government also emphasizes blockchain technology promotion, it is seen as a clear 'business opportunity.'

Lee Hwajeong, Senior Researcher at Hana Financial Management Research Institute, explained, "NFTs, which are rapidly growing around collectibles and games, are quickly penetrating everyday areas such as certification and identity verification beyond the virtual world. Coupled with the new government's intention to foster the digital asset market, steep growth of the domestic NFT market and expansion of corporate participation are expected. Although domestic financial companies' entry into NFTs is somewhat slower compared to overseas financial firms and domestic big tech companies, they are rapidly expressing their willingness to participate following the new government's launch, making it a time to proactively develop business models."