The partnership will study won-backed stablecoin use in cross-border payments and trade settlement as South Korea develops rules for issuance, circulation and overseas transfers.
HashKey Group has signed a memorandum of understanding with South Korea’s Kbank and BPMG Group to develop digital asset business models centered on payments and settlement, with a focus on Korean won-backed stablecoins for cross-border payments and regional trade settlement. The companies said the work forms part of HashKey’s “Asia Connect” strategy and will combine HashKey’s digital asset infrastructure, Kbank’s banking services and BPMG’s technical capabilities to design and test new financial systems. The agreement does not mark the launch of a live stablecoin or remittance service. Instead, it sets a framework for testing business models, assigning operational roles and preparing systems that could be used if South Korean regulators approve the relevant services. Kbank will review compliance and feasibility within South Korea’s financial rules and banking system, while BPMG, through its U.S. subsidiary ARACORE, will build stablecoin-based payment and settlement infrastructure. South Korean reports said the companies also plan to study a practical remittance model between South Korea and Hong Kong. The move comes as South Korea works on a broader legal framework for digital assets and won-backed stablecoins under the planned Digital Asset Basic Act, while regulators and lawmakers continue debating who should be allowed to issue such tokens. HashKey said it already has business relationships in the Philippines, Vietnam, Indonesia, Malaysia, Thailand and the UAE. BPMG CEO Cha Ji-hoon said, “This collaboration will serve as a pivotal moment to accelerate our global stablecoin financial infrastructure business.”