Originally published on: November 13, 2024
Fireblocks, a leading digital assets platform, has recently announced a strategic partnership with NongHyup Bank, one of South Korea’s largest banks known for its commercial credit and agricultural banking services. The goal of this collaboration is to develop a prototype for tax refunds using blockchain technology.
The partnership will leverage Fireblocks’ advanced Tokenization Engine in a pilot project focused on refunding value-added tax (VAT) and goods and services tax (GST) on purchases made at retail stores. Michael Shaulov, the co-founder, and CEO of Fireblocks, highlighted the importance of enhancing transparency and security in these transactions. He stated, “This not only reduces operational costs but also ensures a secure, immutable record that strengthens trust between banks and their clients.”
In South Korea, VAT is set at a flat rate of 10%, with some products being exempt from the tax. Tourists are also exempt from VAT for most purchases. The fee for VAT return typically varies between 3% to 6% of the item’s cost.
Beyond the VAT tokenization project, Fireblocks and NongHyup Bank are exploring additional collaborative opportunities. Lee Seok-yong, the President of NongHyup Bank, expressed the bank’s commitment to delivering innovative blockchain-powered services to its customers. With over 10 million customers, NongHyup Bank aims to leverage blockchain technology to enhance its service offerings.
Fireblocks specializes in custody solutions for digital assets and facilitates secure transactions, storage, and issuance of cryptocurrencies. The company has a track record of securely transferring over $6 trillion in digital assets for various clients, including wallets, custodians, and trading partners.
In addition to its partnership with NongHyup Bank, Fireblocks has expanded its services to include derivatives and trading products in collaboration with Coinbase International. Furthermore, the company recently introduced a Web3 kit tailored for startups, showcasing its commitment to innovation and growth in the blockchain space.
With the increasing interest of major South Korean banks in blockchain and digital assets, partnerships like the one between Fireblocks and NongHyup Bank reflect the growing importance of blockchain technology in the financial sector. Stay tuned for more updates on this exciting collaboration and other developments in the crypto universe.
