Hana Financial Group has successfully completed a proof-of-concept for a blockchain-enabled cross-border remittance system, collaborating with Dunamu, the operator of Upbit, South Korea”s largest cryptocurrency exchange. The announcement was made on Friday, outlining how the pilot program replaced the traditional Society for Worldwide Interbank Financial Telecommunication (SWIFT) messaging system with Dunamu”s proprietary blockchain technology, the GIWA Chain.
The trial demonstrated that utilizing blockchain significantly shortened settlement times and decreased transaction costs when compared to the existing SWIFT framework. Hana Financial Group highlighted that the system adhered to essential compliance regulations, including anti-money laundering (AML) measures and know-your-customer (KYC) protocols, as well as meeting internal controls relevant to foreign exchange transactions.
This initiative marks a significant achievement in the strategic partnership established in December between Hana Financial Group and Dunamu, focusing on the development of blockchain-based solutions for global financial services. Following this successful trial, Hana plans to introduce a new international remittance infrastructure utilizing deposit tokens by the third quarter of this year. This innovative framework would enable customers to send funds across borders using digital tokens that are backed by their bank deposits.
Lee Eun-hyung, vice chairman of Hana Financial Group, remarked, “We will continue incorporating digital assets and advanced technologies into conventional financial services to deliver greater customer benefits.” Oh Kyoung-suk, CEO of Dunamu, noted that the recent test signifies an initial step in showcasing blockchain”s potential to transform into a new standard for global financial infrastructure.
