KB Kookmin Bank headquarters [Kookmin Bank]
KB Kookmin Bank headquarters [Kookmin Bank]

KB Kookmin Bank said Sunday it will launch a blockchain-based cross-border payment service for trade companies next month, using the Kinexys by J.P. Morgan payment network.

The service is based on an MOU the two institutions signed for a blockchain remittance service aimed at innovating cross-border payments. Kookmin Bank is the first domestic financial institution to apply the Kinexys by J.P. Morgan blockchain-based payment network to trade payment services.

Kinexys by J.P. Morgan is J.P. Morgan's blockchain business division and one of the world's largest institutional blockchain payment infrastructures. Cumulative transaction volume has surpassed $4 trillion, with average daily transactions running at around $7 billion. The platform supports remittances and foreign exchange settlements linked to the existing SWIFT network, and provides near-real-time international payments and automated fund transfers around the clock, 365 days a year.

The service will be available through Kookmin Bank's domestic branches and its Singapore branch. Transfers will be supported to 10 countries in total, including South Korea, the United States, Singapore, Saudi Arabia, India, Thailand, Qatar, the UAE, Bahrain and South Africa. The bank plans to prioritize US dollar transactions at launch.

Kookmin Bank has been working to expand its digital financial services, becoming the first domestic bank last month to successfully issue a blockchain-based dollar-denominated digital bond. The bank said it will continue pursuing service expansion through digital financial innovation.

A Kookmin Bank official said the service "is significant in that it connects global digital payment infrastructure with domestic corporate banking services," adding that the bank "will continue to expand innovative financial services in response to the evolving global payments landscape."


ehkim@heraldcorp.com