Sh Suhyup Bank will take part in a demonstration of InfiniteBlock's blockchain-based management solution for prepaid electronic payment instruments.

Suhyup Bank said on Oct. 7 it will join a financial regulatory sandbox consignment test of InfiniteBlock's "prepaid electronic payment instrument issuance and records management solution" and carry out a demonstration for the next 1 year.

Under the solution, when an issuer of prepaid electronic payment instruments issues electronic payment means such as pay money, the depository financial institution provides deposit account and real-time balance information, and InfiniteBlock records and manages it on a blockchain basis.

This allows real-time checks and verification of the outstanding balance of prepaid electronic payment instruments and the status of deposits. It records transaction information such as issuance, top-ups and use on a blockchain to manage transaction evidence, and it is used to confirm that outstanding balances do not exceed the size of trust and deposited funds.

Suhyup Bank reviewed a cooperation model proposed by InfiniteBlock at the 12th mutual meeting event between financial companies and fintech firms hosted by the Fintech Support Center on Sept. 1. After an internal suitability review, it decided on Sept. 30 to participate in the consignment test.

Suhyup Bank plans to review business potential related to deposits of prepaid top-up funds and ways to apply blockchain-based financial services through the demonstration.

Shin Hak-ki (신학기), head of Sh Suhyup Bank, said, "Through this consignment test, we will raise the transparency and reliability of prepaid top-up fund management and confirm the potential for innovation in financial services using blockchain technology."