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Hana, Dunamu test blockchain FX remittance as alternative to global messaging system
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By Jun Ji-hye
Hana Financial Group has completed a proof-of-concept project for a blockchain-based cross-border remittance service in partnership with Dunamu, the operator of Korea’s largest cryptocurrency exchange, Upbit, the companies said Friday.
The pilot replaced the conventional Society for Worldwide Interbank Financial Telecommunication (SWIFT) messaging network with Dunamu’s proprietary blockchain platform, the GIWA Chain, to test whether international transfers could be processed through the new system.
According to Hana, the trial showed that blockchain can significantly reduce settlement times and transaction costs compared with the traditional SWIFT framework. The system also met key compliance requirements, including anti-money laundering and know-your-customer checks, as well as other internal control standards related to foreign exchange transactions.
The initiative marks the first tangible outcome of the strategic alliance the two companies formed in December to jointly develop blockchain-based global financial services.
Building on the results, Hana Financial Group plans to roll out a new international remittance infrastructure based on deposit tokens by the third quarter. Under the proposed structure, customers would be able to send funds overseas using digital tokens backed by their bank deposits.
“We will continue incorporating digital assets and advanced technologies into conventional financial services to deliver greater customer benefits,” said Lee Eun-hyung, vice chairman of Hana Financial Group.
Oh Kyoung-suk, chief executive of Dunamu, said, “The latest test represents an early step toward demonstrating blockchain’s potential to evolve into a new global financial infrastructure standard.”