South Korea’s Hana Monetary Group, POSCO Worldwide and Dunamu, the operator of the crypto trade Upbit, have signed a trilateral memorandum of understanding (MoU) to launch their blockchain-based remittance system, with POSCO Worldwide serving as the primary real-world take a look at case.
The settlement, signed Tuesday at Hana Monetary Group’s Seoul headquarters, follows a profitable proof-of-concept (PoC) accomplished earlier this 12 months by Hana and Dunamu, which confirmed that blockchain might cut back settlement occasions and prices in comparison with the standard SWIFT framework. That pilot used Dunamu’s proprietary GIWA Chain to exchange SWIFT’s messaging community for cross-border transfers.
The brand new MoU permits the system to be examined on actual commerce transactions for the primary time, with POSCO Worldwide dealing with the precise fund flows, the corporate said in a Wednesday announcement.
Conventional cross-border funds use SWIFT, the place sending the cost instruction and truly transferring the cash are two separate steps, which slows issues down and provides prices. The blockchain system combines each right into a single real-time course of, making transfers quicker and cheaper.
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Dunamu’s GIWA Chain to energy blockchain remittance system
Underneath the deal, POSCO Worldwide’s buying and selling arm will deal with enterprise utility utilizing actual transaction flows, Hana Monetary will handle remittance processing, fund settlement and overseas trade, whereas Dunamu gives the blockchain infrastructure via GIWA Chain and maintains the transaction file.
“We’ve established a basis for mid-to-long-term partnerships with main home firms within the fields of digital finance and digital property,” Lee Gye-in, president of POSCO Worldwide, stated.
From left to proper: Hana Monetary Group vice chairman Lee Eun-hyung, POSCO Worldwide president Lee Gye-in, and Dunamu CEO Oh Kyung-seok. Supply: POSCO
The three firms plan to ascertain a working mannequin for real-time blockchain remittances earlier than the tip of the 12 months.
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POSCO Worldwide deepens crypto push
The deal provides to POSCO Worldwide’s broader push into digital finance. The corporate lately issued blockchain-based overseas foreign money digital bonds price roughly 140 billion received (about $95 million) with HSBC, and final 12 months introduced a blockchain-based world cost system with JP Morgan.
As Cointelegraph reported, South Korean internet-only financial institution Kbank has also partnered with Ripple to check blockchain-based cross-border remittances.
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