Kbank said Tuesday it signed a memorandum of understanding with Korean blockchain company BPMG and Hong Kong-based digital asset firm HashKey Group to develop stablecoin-based cross-border remittance services and related technologies.
Under the partnership, the three companies plan to connect a blockchain remittance model developed by Kbank and BPMG with HashKey’s network for users in Hong Kong and Southeast Asia, with the longer-term goal of building a broader remittance network across Asia.
They will also cooperate on digital asset custody, conversion and settlement technologies and explore new business models using digital assets.
Ahead of any regulatory approval or commercial launch, the companies plan to establish internal controls covering know-your-customer procedures and anti-money laundering requirements. Kbank said blockchain could improve the transparency and cost efficiency of overseas remittances.
HashKey Group is a Hong Kong-based digital asset company with operations in markets including Singapore and Japan.
The agreement is the latest in a series of global partnerships by Kbank. Earlier this year, the internet-only bank signed agreements with UAE-based Changer.ae, Thailand’s Kasikornbank and blockchain company Ripple.
Kbank plans to develop service models through proof-of-concept projects with each partner before gradually expanding them into overseas markets.
“With this agreement, we have expanded our network to Hong Kong following partnerships in the UAE and Thailand,” a Kbank official said. “We will continue broadening cooperation with financial and blockchain companies in other markets.”
jwjeon7625@heraldcorp.com