KB Kookmin Bank is taking its blockchain efforts a step further by launching a new international corporate payment service next month, powered by Kinexys. This makes it the first bank in South Korea to utilize J.P. Morgan’s blockchain network for handling trade payments.
Summary
- KB Kookmin Bank plans to launch South Korea’s first Kinexys powered blockchain payment service for corporate trade settlements next month.
- The service will initially support U.S. dollar cross border transfers across 10 countries through the bank’s Korean and Singapore branches.
- The launch builds on KB Kookmin Bank’s recent blockchain initiatives, including a $100 million digital bond issuance and a stablecoin payment card project with Avalanche.
- Kinexys by J.P. Morgan provides programmable payments and near real time settlement for institutional clients using blockchain technology.
I just read that KB Kookmin Bank in South Korea is getting ready to launch a new crypto service next month. They’re partnering with Kinexys, which is actually part of J.P. Morgan, to make it happen. Seems like a big move for crypto adoption in Korea!
The bank is set to be the first in the nation to use a blockchain network for handling payments related to international business transactions – both imports and exports.
KB Kookmin Bank brings Kinexys to corporate payments
KB Kookmin Bank will soon offer a new service through its branches in both South Korea and Singapore, reports Yonhap. Initially, the bank will focus on U.S. dollar transfers to and from ten countries: South Korea, the United States, Singapore, Saudi Arabia, India, Thailand, Qatar, the United Arab Emirates, Bahrain, and South Africa.
Kinexys, a division of J.P. Morgan, uses blockchain technology to help businesses manage payments and digital assets more efficiently. It allows institutional clients to make international payments and settle transactions almost instantly, using blockchain instead of traditional methods.
The report didn’t share details about how much people can transact, or which types of companies will have early access. It also remained unclear if more currencies or countries would be supported later on.
KB Kookmin Bank’s upcoming launch is part of a growing blockchain initiative. Unlike many banks that only test the technology, KB Kookmin Bank is actively using it for real-world applications like payments, fundraising, and improving its digital financial systems.
Earlier blockchain projects have covered fundraising
This new payment feature builds on a successful blockchain project the bank finished earlier in the year.
KB Kookmin Bank recently became the first South Korean bank to borrow money internationally using blockchain technology. In June, they successfully issued $100 million in digital bonds using this method, as reported by local news sources.
A two-year bond, priced at the Secured Overnight Financing Rate plus 0.4%, was privately sold to investors in Hong Kong. HSBC managed the sale and completed the transaction using its digital platform, Orion.
The bank successfully used blockchain technology to manage bonds from their creation through trading and final settlement. This new system reduced the settlement time from the usual five business days to just three. According to a bank spokesperson, this process not only streamlined operations but also lowered the risk of settlement failures.
From my perspective, this deal wasn’t just a test of blockchain – it was a real-world application for raising capital. What’s particularly noteworthy is that, as far as I can tell, this is one of the first times a South Korean commercial bank has actually used blockchain for a live fundraising operation, moving beyond just experimentation.
Blockchain development within KB Financial Group has also extended into consumer payments.
KB Kookmin Card revealed plans earlier this year to create a new type of credit card system using Avalanche and OpenAsset. As reported by JoongAng Economy and several industry sources, the system will let customers link their blockchain-based stablecoin wallets directly to their regular credit cards.
With this unique payment system, customers initially pay using the stablecoins in their digital wallets. If they don’t have enough stablecoins available, the rest of the purchase is automatically charged to their connected credit card. Merchants still get paid as usual through standard payment networks.
Avalanche will handle the technology side of the system – things like creating the stablecoin, moving money between digital wallets, and finalizing transactions on the blockchain. Meanwhile, KB Kookmin Bank’s existing payment network will still be responsible for approving purchases, processing payments, and paying merchants.
The bank has confirmed that adding blockchain payments won’t affect current card benefits or reward programs for customers.
South Korea’s banking sector has increased blockchain adoption
This new collaboration with Kinexys comes as several banks in South Korea begin testing blockchain technology within established regulatory guidelines.
As a researcher following developments in digital finance, I’ve been tracking some interesting initiatives in South Korea. The government is actively exploring the use of tokenized bank deposits for public spending, and they’ve already included KB Kookmin Bank as a key partner. They’ve selected a regulatory sandbox project to test this, and the current plan is to begin implementation in late 2026.
Nine banks – including KB Kookmin, Shinhan, Woori, and Hana – are involved in this new initiative. The government explains that the system will link its financial records with a secure digital network. This allows them to pre-set rules for how funds can be spent and create a clear, traceable record of all public spending.
2026-07-27 10:56