South Korea’s Hana Financial Group, POSCO International and Dunamu, the operator of the crypto exchange Upbit, have signed a trilateral memorandum of understanding (MoU) to launch their blockchain-based remittance system, with POSCO International serving as the first real-world test case.
The agreement, signed Tuesday at Hana Financial Group’s Seoul headquarters, follows a successful proof-of-concept (PoC) completed earlier this year by Hana and Dunamu, which showed that blockchain could reduce settlement times and costs compared to the traditional SWIFT framework. That pilot used Dunamu’s proprietary GIWA Chain to replace SWIFT’s messaging network for cross-border transfers.
The new MoU allows the system to be tested on real trade transactions for the first time, with POSCO International handling the actual fund flows, the company said in a Wednesday announcement.
Traditional cross-border payments use SWIFT, where sending the payment instruction and actually moving the money are two separate steps, which slows things down and adds costs. The blockchain system combines both into a single real-time process, making transfers faster and cheaper.
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Dunamu’s GIWA Chain to power blockchain remittance system
Under the deal, POSCO International’s trading arm will handle business application using real transaction flows, Hana Financial will manage remittance processing, fund settlement and foreign exchange, while Dunamu provides the blockchain infrastructure through GIWA Chain and maintains the transaction record.
“We have established a foundation for mid-to-long-term partnerships with leading domestic companies in the fields of digital finance and digital assets,” Lee Gye-in, president of POSCO International, said.
From left to right: Hana Financial Group vice chairman Lee Eun-hyung, POSCO International president Lee Gye-in, and Dunamu CEO Oh Kyung-seok. Source: POSCO
The three companies plan to establish a working model for real-time blockchain remittances before the end of the year.
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POSCO International deepens crypto push
The deal adds to POSCO International’s broader push into digital finance. The company recently issued blockchain-based foreign currency digital bonds worth approximately 140 billion won (about $95 million) with HSBC, and last year introduced a blockchain-based global payment system with JP Morgan.
As Cointelegraph reported, South Korean internet-only bank Kbank has also partnered with Ripple to test blockchain-based cross-border remittances.
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