KB Kookmin Bank will begin using JPMorgan’s Kinexys blockchain platform to handle US dollar payments for import and export clients starting in August. The shift is expected to streamline cross-border transactions, initially covering transfers to ten countries including the US, Singapore, and the UAE.
Expanding Blockchain Use in Trade Finance
The new service will tap into JPMorgan’s Kinexys, a blockchain unit formerly known as Onyx, which has facilitated over $4 trillion in transactions since its inception. Daily transaction volumes average above $7 billion. By integrating this technology, KB Kookmin aims to enhance speed and security in trade-related dollar remittances through Korean branches and their Singapore office.
Implications for Korea’s Banking Sector
This move aligns with KB Kookmin’s recent selection for a government-backed deposit token payment initiative led by the Ministry of Science and ICT and the Korea Internet & Security Agency. How other Korean banks respond to JPMorgan’s blockchain offering will reveal the potential for wider adoption of tokenized deposits beyond JPMorgan’s direct clients.
