K Bank Successfully Completes Stablecoin Remittance Technology Verification Between Korea and Japan

Successful Completion of Phase 1 of "Project Pax"
Efficiency and Feasibility of Cross-Border Remittances Confirmed
Simultaneous Currency Settlement Planned for Phase 2
Further Verification Including Small-Amount Remittances

K Bank announced on September 16 that it has successfully completed the first phase of verification for the "Project Pax," a proof-of-concept (PoC) initiative that utilizes stablecoins for cross-border remittances between South Korea and Japan.

On the Korean side, K Bank, Shinhan Bank, NH Nonghyup Bank, Pairsquare Lab, and Korea Digital Asset Custody (KDAC) participated in the Pax Project. On the Japanese side, Norinchukin Bank, fintech company Progmat, and Datachain took part. The participating companies held a closing report meeting for the project in Tokyo, Japan, on the 10th, where they shared the results.

The verification process involved converting Korean won into a Korean won stablecoin in South Korea, transferring it via blockchain, and then exchanging it for Japanese yen in Japan. Through this process, it was confirmed that stablecoin-based remittances can be processed faster and at a lower cost than traditional cross-border remittance methods.

Cha Daesan, CTO of K Bank (fourth from the left in the front row), and Choi Jaehyuk, Head of the Digital Asset Task Force at K Bank (fourth from the left in the back row), along with other Pax Project officials, are taking a commemorative photo at the Pax Project closing report meeting held in Tokyo on the 10th. K Bank

In particular, it was demonstrated that stablecoins can greatly enhance efficiency in interbank transactions, which account for a significant portion of international foreign exchange trading. The open API structure allows not only banks but also secondary financial institutions and corporations to participate easily, which was highly regarded for its potential to expand the infrastructure.

The companies participating in the Pax Project plan to proceed with the second phase of verification, aiming to achieve real-time interoperability with the SWIFT network, payment versus payment (PvP) to ensure simultaneous exchange of different currencies, and expansion into small-amount remittances.

A K Bank representative stated, "Through the first phase of Project Pax, we have demonstrated both the efficiency and practical feasibility of stablecoin-based cross-border remittances. K Bank will continue to lead innovation based on digital assets, providing customers with faster and more efficient services."