As a researcher with a keen interest in blockchain technology and digital assets, I am thrilled to witness the strategic collaboration between Fireblocks and NongHyup Bank. Having closely followed the evolutions in both industries, it is clear that this partnership signifies a significant leap forward in the realm of financial innovation.
Financial asset management platform Fireblocks has entered into a Mutual Understanding Agreement (MUA) with NongHyup Bank, a significant South Korean bank focusing on commercial lending and banking services for the agricultural industry. Their aim is to develop a trial version for agricultural tax rebates.
Innovative tokenization of taxes
Fireblocks and NongHyup Bank plan to utilize the Fireblocks Tokenization Engine in a trial program aimed at reimbursing value-added tax (VAT) and goods and services tax (GST) on retail purchases. The co-founder and CEO of Fireblocks, Michael Shaulov, shared with CryptoMoon their aim to enhance transparency and security by implementing this system.
“Through tokenization, we can assign unique digital identifiers to assets, allowing for real-time tracking across their lifecycle — from issuance to settlement — without the risk of manual error or fraud.”
Not only does this lower the operational expenses, it also establishes a reliable, unchangeable log that boosts trust between banks and their customers,” he explained.
In simple terms, Value-Added Tax (VAT) in South Korea is consistently set at 10%. Some items like medical supplies and raw food products are not subject to this tax. Tourists are usually exempt, except when purchasing small items. The fee for VAT refund can vary between 3% and 6% of the item’s original price.
Beyond their current partnership, NongHyup Bank and Fireblocks are open to exploring further collaboration possibilities. In a statement, Bank President Lee Seok-yong expressed, “This Memorandum of Understanding signifies a significant milestone for NH Bank as we endeavor to provide cutting-edge blockchain services to our customer base, which numbers over 10 million.
For quite a few years now, some significant South Korean financial institutions have demonstrated a keen interest in the field of blockchain technology and digital assets.
Fireblocks expanding beyond custody
Fireblocks provides security services for managing, storing, and distributing digital assets through their custody solutions. They facilitate seamless transactions on a unified platform that caters to wallets, custodians, and trading partners simultaneously. To date, they have securely processed over $6 trillion worth of digital assets.
The business is expanding into fresh areas of operation. For instance, it started providing derivatives and trade goods for both institutional and individual investors in collaboration with Coinbase International back in June. In July, it unveiled a Web3 toolkit designed specifically for startups.
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2024-11-14 00:53