POSCO International has begun processing live cross-border transactions using a blockchain-based payment system developed with Hana Financial Group and Dunamu. The shift from testing to deployment signals growing institutional willingness to replace legacy settlement rails.
The agreement was signed Tuesday at Hana Financial Group’s headquarters in Seoul following a completed proof-of-concept earlier this year. Under the arrangement, Hana manages remittance, foreign exchange, and settlement functions, while Dunamu provides infrastructure through its GIWA Chain, and POSCO applies the system to commercial trade flows.
Can Blockchain Replace SWIFT In Cross-Border Payments?
Pilot results showed blockchain integration can reduce settlement times and transaction costs compared with the SWIFT system, where messaging and fund transfers occur separately. By combining these processes into a single workflow, the new model enables near real-time remittances, a structural shift from multi-day settlement cycles typical in traditional banking networks.
The initiative aligns with a broader institutional push into blockchain finance. POSCO International recently issued foreign currency digital bonds worth about $95 million in partnership with HSBC and previously tested blockchain payments with JPMorgan, indicating increasing overlap between traditional finance infrastructure and distributed ledger systems.
“We have established a foundation for mid-to-long-term partnerships with leading domestic companies in the fields of digital finance and digital assets,” said Lee Gye-in, President of POSCO International.
The companies plan to finalize a scalable model for real-time blockchain remittances before year-end, based on performance during the live testing phase.
Still, regulatory uncertainty may influence the rollout. Dunamu, operator of Upbit, faces ongoing scrutiny tied to a planned stock swap with Naver Financial and potential constraints under South Korea’s proposed Digital Asset Basic Act. Market participants are now watching whether regulatory clarity and transaction data from the pilot accelerate broader adoption across institutional payment networks.
