South Korea’s KB Kookmin Bank will launch a blockchain-based cross-border payment service for corporate clients next month using JPMorgan’s Kinexys platform.
According to a report from Yonhap News Agency, the bank will be the first financial institution in South Korea to use Kinexys for import and export payment settlements. The service is based on a blockchain remittance partnership signed between the two companies.
At launch, the service will be available through KB Kookmin Bank’s branches in South Korea and its Singapore branch. It will initially support U.S. dollar transfers across 10 countries: South Korea, the United States, Singapore, Saudi Arabia, India, Thailand, Qatar, the United Arab Emirates, Bahrain, and South Africa.
Faster international business payments
Kinexys is JPMorgan’s blockchain business focused on institutional payments, asset tokenization, and programmable financial services. The platform integrates with the existing SWIFT payment network while enabling near-real-time, 24/7 settlement and automated payment processing for financial institutions.
KB Kookmin Bank is looking to Kinexys to accelerate the speed and efficiency of international corporate payments without businesses having to move from existing banking infrastructure. The expansion also points to a wider trend by international banks to embrace blockchain technology to modernize cross-border payment systems that can take several days to settle using traditional means.
Part of a broader blockchain push
The launch is the latest step in KB Financial Group’s broader blockchain strategy. Earlier this year, KB Kookmin Card said it was working with Avalanche to develop a hybrid stablecoin payment model, showing the group’s continued interest in blockchain-based payment solutions.
Elsewhere in South Korea, payment service provider NHN KCP signed a memorandum of understanding with Ava Labs in April to build a payments-focused Layer 1 blockchain, underscoring the country’s accelerating interest in blockchain infrastructure for enterprise and financial applications.
KB Kookmin Bank is expected to roll out the service next month, beginning with U.S. dollar transactions across the 10 supported markets. The rollout reflects a wider trend of banks using blockchain technology to improve cross-border payments, with a focus on making transactions faster and more efficient.
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