KB Kookmin Bank adopts JPMorgan blockchain

KB Kookmin Bank will launch an import and export payment service using the Kinexys blockchain network from J.P. Morgan. The South Korean bank is the first financial institution in the country to adopt this network for corporate payments.

The service will be available through the bank's domestic branches in Korea and its Singapore branch. It will support U.S. Dollar remittances to ten countries.

Faster settlement for global trade

Once live, Korean companies will use the Blockchain Deposit Account (BDA) network to settle U.S. Dollar payments. The bank states this will make transactions faster and more secure with major overseas financial institutions on the same network. Settlement times are expected to drop significantly for deals with countries like the United States and those in the Middle East, where differing time zones and business days normally cause delays.

This improvement should allow Korean exporters to receive trade proceeds more quickly. It will also boost the efficiency of their cash management.

Strategic significance for banking

A KB Kookmin Bank official said the service connects global digital payments infrastructure with corporate banking in Korea. The official added that the bank would continue to expand innovative financial services in response to the changing global payments environment.

Chris Park, Head of Payments for Korea at J.P. Morgan, also commented. "As the first financial institution in Korea to use Kinexys’ Blockchain Deposit Account network for corporate payments, KB Kookmin Bank is paving the way for the next generation of payments," Park said. He expressed pride in supporting the bank to bring blockchain-based payments to Korean traders and help advance the country's cross-border payments landscape.

The technology providers

KB Kookmin Bank is described as a leading South Korean financial institution with a strong brand, broad customer reach, and an extensive nationwide network. It provides a comprehensive range of financial solutions across retail and corporate banking.

Kinexys by J.P. Morgan is the firm's blockchain business unit, part of J.P. Morgan Payments. The platform has processed more than $4 trillion in cumulative transactions. Its average daily transaction volume is $7 billion. The network enables near real-time cross-border settlements 24 hours a day, seven days a week, and includes programmable payment functionality to enhance the speed and efficiency of international payments.