Hana Financial Group, Dunamu Complete PoC for Blockchain-Based Cross-Border Remittances

Replacing SWIFT Between Domestic and Overseas Branches with GIWA Chain
Real-Time Cross-Border Remittances and Lower Fees Expected
Cross-Border Remittance Infrastructure to Be Established by the Third Quarter

Hana Financial Group announced on February 27 that, together with Dunamu, it has successfully completed a proof of concept (PoC) for a cross-border remittance service using blockchain technology.

Hana Financial Group Myeong-dong Office Building

In this proof of concept, the conventional SWIFT-based remittance messages exchanged between Hana Bank’s domestic and overseas branches were replaced with blockchain messages on GIWA Chain, a blockchain network operated by Dunamu. Through this, Hana Bank confirmed that it can dramatically reduce both the processing time and the cost of foreign currency remittance transactions compared with the existing SWIFT method.

Hana Financial Group and Dunamu also collaborated in areas such as anti-money laundering (AML) and know-your-customer (KYC), which are essential verification elements in fund transfer transactions. As a result, they explained that the system has secured sufficient technological stability in terms of internal controls and risk management required for foreign exchange transactions.

This proof of concept is the first outcome of the continuous collaboration between Hana Financial Group and Dunamu following the signing in December last year of a business agreement titled “Business Agreement for Joint Development of Global Financial Services Based on Blockchain Technology.” The two companies have been working together to apply blockchain technology to traditional financial services, including foreign exchange operations.

Based on this achievement, Hana Financial Group plans to build a new cross-border remittance infrastructure using deposit tokens by the third quarter of this year. Under this model, deposit tokens will be issued on the basis of cash deposited by customers and then sent and received directly between remittance sending and receiving channels. The company plans to test the entire process from token issuance, transfer, payment, and settlement, and to trial integration into the bank’s existing IT systems, with the goal of launching an actual service through designations such as innovative financial services.

If this service is commercialized, it is expected to move beyond the SWIFT-based cross-border remittance business structure that has been used for decades, and to establish a new cross-border remittance infrastructure and ecosystem that enables uninterrupted 24-hour real-time settlement at lower cost.

Lee Eunhyoung, Vice Chairman of Hana Financial Group, said, “It is significant that Hana Financial Group and Dunamu signed a business agreement and were able to deliver results within a short period of time,” adding, “We will continue our efforts to innovate traditional finance and provide greater value to our customers through the adoption of technologies including digital assets.”

Oh Kyungseok, CEO of Dunamu, said, “This proof of concept, which has innovated the existing SWIFT system with the GIWA Chain, is a first step in proving that blockchain can go beyond being a mere technology to become a new standard for global financial infrastructure,” and added, “We will continue to pursue challenges that can lead the future financial ecosystem based on global Web3.”

This content was produced with the assistance of AI translation services.