KB Kookmin Bank to launch Kinexys-based cross-border payment service in August
The South Korean lender will use JPMorgan’s blockchain network for U.S. dollar corporate remittances across 10 countries, linking the service with SWIFT for near-instant payments and foreign exchange settlement.
KB Kookmin Bank plans to launch a cross-border payment service in August using JPMorgan’s Kinexys network, a blockchain-based platform for institutional payments, tokenization and digital assets formerly known as Onyx. The service is aimed at import and export businesses and will initially support U.S. dollar transfers across 10 countries, including the United States, Singapore, Saudi Arabia and the United Arab Emirates. It will connect to the SWIFT network to support near-instant payments and foreign exchange settlement. The move adds to the use of blockchain rails by traditional banks for faster cross-border money movement while remaining tied to existing financial infrastructure. KB Kookmin Bank is part of KB Financial Group, which S&P Global said in an April report was South Korea’s largest lender by assets and the 28th-largest bank in the Asia-Pacific region, with $552.76 billion in total assets.
- Kinexys: JPMorgan’s blockchain-based network for institutional payments, tokenization and digital asset-related services.
- foreign exchange settlement: The process of completing a currency conversion and delivering the two currencies involved in a cross-border transaction.
- SWIFT: A global financial messaging network banks use to transmit payment instructions and other transaction information.