South Korean financial group Hana, POSCO International and Dunamu, operator of cryptocurrency exchange Upbit, have signed a trilateral memorandum of understanding (MoU) to launch a blockchain-based remittance system, with POSCO International representing the first real-world test case.
The agreement, signed on Tuesday at Hana Financial Group’s headquarters in Seoul, follows a successful proof of concept (PoC) completed earlier this year by Hana and Dunamu, which demonstrated that blockchain can reduce settlement times and costs compared to the classic SWIFT framework. This pilot used Dunamu’s proprietary GIWA chain to replace the SWIFT messaging network for cross-border transfers.
The modern MoU allows the system to be tested for the first time on real trade transactions, with POSCO International handling the actual flow of funds. he said in Wednesday’s announcement.
Conventional cross-border payments utilize SWIFT, where sending the payment instructions and actually transferring the money are two separate steps, slowing down the process and increasing costs. The blockchain system combines both into one real-time process, making transfers faster and cheaper.
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Dunamu’s GIWA chain to power the blockchain money transfer system
Under the agreement, POSCO International’s trading arm will operate business applications using real-world transaction flows, Hana Financial will manage remittance processing, funds settlement and currency exchange, while Dunamu will provide blockchain infrastructure via GIWA Chain and maintain the transaction record.
“We have laid the foundation for medium and long-term cooperation with leading domestic companies in the field of digital finance and digital assets,” said Lee Gye-in, president of POSCO International.
From left to right: Hana Financial Group Vice President 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 real-time money transfer model on blockchain before the end of the year.
Related: Naver-Dunamu’s filing sets the IPO committee, which includes a timeline for the fintech group
POSCO International deepens crypto push
The transaction complements POSCO International’s broader commitment to digital finance. The company has recently started released blockchain-based digital currency bonds worth about 140 billion won (about $95 million) at HSBC, and last year introduced global blockchain-based payment system from JP Morgan.
As Cointelegraph reports, South Korean online bank Kbank has also partnered with Ripple to test blockchain-based cross-border money transfers.
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