KB Financial Group Completes Won Stablecoin Pilot with Reduced Remittance Times

KB Financial Group has made significant strides in its efforts to integrate blockchain technology into its financial services. The group has completed a proof of concept for a won-denominated stablecoin, which enables fast and secure transactions.

The pilot program was conducted in collaboration with several companies, including KG Inicis, Kaia, and OpenAsset. The project focused on shifting the internal settlement structure to a blockchain-based system while maintaining an unchanged customer experience.

One of the key achievements of the pilot program was the reduction of remittance times from several hours or days to just three minutes. This was made possible through the use of Kaia's on-chain liquidity, which enables the conversion of a won stablecoin into a dollar stablecoin and subsequent transfer to an actual bank account.

The same process typically takes several hours or days under the existing SWIFT system, resulting in significant time savings for customers. Additionally, fees were reduced by about 87% compared to traditional remittance methods.