KB Kookmin to launch Kinexys-based dollar payments in August

KB Kookmin Bank will introduce a blockchain-based cross-border payment service in August using JPMorgan’s Kinexys network. The initial service will enable US dollar transfers for import and export businesses across 10 countries and connect with the SWIFT payment network to support near-instant transfers and foreign exchange settlement.

The bank plans to target corporate clients engaged in international trade, with an initial focus on US dollar transactions. Transfers will be supported to and from 10 markets, including the United States, Singapore, Saudi Arabia and the United Arab Emirates. The service is scheduled to be available in August.

Kinexys is JPMorgan’s institutional blockchain platform for payments, tokenization and digital assets; it was previously known as Onyx. The platform is built to allow faster settlement and programmable payment features for financial institutions.

KB Kookmin intends to link the blockchain system with the existing SWIFT infrastructure so payment instructions can move between the two systems. The integration is designed to shorten settlement times compared with traditional correspondent banking arrangements while routing foreign exchange settlement through established channels.

KB Kookmin is the retail banking unit of KB Financial Group. Research firm S&P Global ranks KB Financial Group as South Korea’s largest lender by assets and places it 28th among banks in the Asia-Pacific region, with about $552.76 billion in total assets.

Further details on pricing, customer onboarding and the full list of supported corridors were not disclosed. The August launch will represent the initial phase of the bank’s planned use of blockchain technology for cross-border corporate payments.