K-Bank Participates in Overseas Remittance Technology Verification Project Using Stablecoin

On the 10th, K Bank announced that it will participate in the 'Pax Project,' a technology verification project for overseas remittances using stablecoins.

Stablecoins are digital assets that minimize price volatility by linking their value to fiat currencies such as the US dollar or tangible assets like gold. Representative examples include Tether (USDT) and USD Coin (USDC), which are pegged 1:1 to the US dollar. Overseas remittances using stablecoins are expected to drastically reduce the high fees and long processing times that are drawbacks of traditional overseas remittances.

The 'Pax Project' is an international cooperation project underway in Japan, where stablecoins are legalized, aiming to build a next-generation global remittance and payment system using digital assets. K Bank's area of participation in the 'Pax Project' is the 'overseas remittance PoC linking Korean and Japanese banking systems.' This involves linking the banking systems of Korea and Japan to examine whether overseas trade remittances using won-based stablecoins can operate smoothly in an actual financial environment. Domestic banks including K Bank, Korea Digital Asset Custody (KDAC), and Fair Square Lab are participating, with the project running for about three months from March to May.

A K Bank official stated, "By participating in the overseas remittance PoC using stablecoins, we aim to verify the usefulness of stablecoins and explore various ways to utilize stablecoins once they are legalized in the future." He added, "K Bank will continue to make various efforts to lead technological innovation in finance, including digital assets."