Dunamu, Hana Financial Take Blockchain Delivery System Live at POSCO
South Korea's Hanna Financial Group, POSCO International and Dunamu, the operator of crypto exchange Upbit, have signed a tripartite agreement (MoU) to launch their blockchain-based money exchange system.
The agreement, signed on Tuesday at Hana Financial Group's Seoul headquarters, follows a successful proof-of-concept (PoC) completed by Hana and Dunamu earlier this year, which demonstrated that blockchain can reduce settlement time and costs compared to a traditional Swift framework. That pilot used Dunamu's proprietary GIWA Chain to replace the SWIFT messaging network for cross-border transfers.
The new memorandum of understanding will allow the system to be tested on a real transaction for the first time, with POSCO International handling real cash flows, the company said in a statement on Wednesday.
Traditional cross-border payments use SWIFT, where sending the payment instruction and actually moving the money are two separate steps, which slows things down and increases costs. Blockchain systems combine both into one real-time process, making transfers faster and cheaper.
RELATED: South Korea to make deposit for government spending token
Dunamu GIWA chain to enhance the blockchain delivery system
Under the agreement, POSCO's international trading arm will handle business applications using real-time transaction flow, Hana Financial will manage currency exchange, fund distribution and foreign exchange, while Dunamu will provide the blockchain infrastructure through GIWA Chain and maintain the transaction record.
“We have established a foundation for medium-to-long-term cooperation with leading domestic companies in the field of digital finance and digital assets,” said Lee Ji-in, president of POSCO International.
From left to right: Lee Eun-hyung, vice chairman of Hanna Financial Group, Lee Ji-in, president of POSCO International, and Oh Kyung-seok, CEO of Dunamu. Source: POSCO
The three companies plan to establish a real-time blockchain money exchange operating model before the end of the year.
Related: Naver-Dunamu filing sets IPO committee, outlines timeline for fintech group
POSCO International deepens crypto push
The deal adds to POSCO International's broader push into digital finance. The company recently issued blockchain-based foreign currency digital bonds worth approximately 140 billion won (about $95 million) with HSBC, and last year introduced a blockchain-based global payment system with JP Morgan.
As Cointelegraph reports, South Korea's internet-only bank Kbank has also partnered with Ripple to test blockchain-based cross-border money transfers.
Magazine: South Korea gets rich from crypto… North Korea gets weapons.
