Dunamu, the operator of South Korea's largest cryptocurrency exchange Upbit, has signed a memorandum of understanding with Hana Financial Group and POSCO International to jointly develop a blockchain-based cross-border remittance platform. The agreement, signed Wednesday at Hana Financial Group's headquarters in Seoul, aims to reduce transfer costs and settlement times for corporate clients by replacing the conventional SWIFT-based messaging system with blockchain-based transaction processing.
Under the partnership, the three companies plan to establish a real-time remittance system within 2026. POSCO International processes approximately 40,000 overseas remittance transactions annually across its network spanning 51 countries and will serve as the first real-world use case, applying the new technology to actual fund flows within its trade operations to validate its effectiveness.
Hana Financial Group and Dunamu had already completed a proof-of-concept project in February, successfully replacing traditional SWIFT messages with Dunamu's proprietary GIWA Chain across Hana Bank's domestic and overseas branches. The pilot demonstrated measurable gains in efficiency, with remittance fees significantly reduced and settlement times shortened compared with the legacy framework.
Defined Roles and Privacy Safeguards: Hana Financial Group will handle financial transactions, including remittance management, fund settlement, and payment execution. POSCO International will lead business applications by leveraging its extensive global trade network as a real-world testing environment. Dunamu will provide the underlying technology infrastructure through GIWA Chain, a layer-2 blockchain designed to handle high transaction volumes while enhancing data privacy. During the proof-of-concept phase, Dunamu also applied its proprietary privacy protocol, BOJAGI, built on zero-knowledge proof technology that allows transaction validity to be verified without exposing sensitive financial data.
Dunamu CEO Oh Kyung-seok said he expects GIWA Chain's technology to serve as 'a foundation for a more efficient and transparent on-chain financial environment.' Hana Financial Vice Chair Lee Eun-hyung called the agreement 'an important turning point in combining digital assets with the traditional industry and finance.' The partnership reflects a growing trend among South Korean financial institutions exploring blockchain infrastructure to modernise cross-border payments. The global remittance market was valued at $860 billion in 2024, and industry analysts project that blockchain-based deposit token systems could reduce cross-border settlement costs by 40 to 80 per cent while improving transaction speed by 90 per cent.
