HashKey joins hands with Kbank and BPMG to promote South Korea's stablecoin payments

HashKey Group signed a memorandum of understanding with South Korea's Kbank and BPMG Group to jointly develop digital asset payment and settlement models.

HashKey Group has signed a memorandum of understanding with South Korea's Kbank and blockchain technology company BPMG Group to jointly develop a digital asset business model focusing on payment and settlement.

Cooperation Points

The three parties will explore cross-border payment and regional trade settlement solutions based on Korean won stablecoins. Kbank is responsible for compliance and feasibility assessment, while BPMG builds a stablecoin payment and settlement infrastructure system. The cooperation extends HashKey's "Asia Connect" strategy and coincides with South Korea's formulation of clearer rules for stablecoins.

The agreement is part of HashKey's "Asia Connect" strategy, which aims to study the use of stablecoins backed by the Korean won in cross-border payments and trade settlements. HashKey said the three companies will combine their digital asset infrastructure, Kbank's banking services and BPMG's technical capabilities to jointly design and test a new financial system.

Currently, all parties have not announced the product launch date, nor have they confirmed the launch of commercial stablecoin products. Work still requires regulatory approval and compliance with local compliance requirements. The memorandum does not announce the launch of actual stablecoins or remittance services, but rather sets a framework for the three companies to test business models, allocate operational roles, and prepare systems that can be put into use after South Korean regulators approve the services.

The division of labor among the three parties is clear

Under the proposed partnership arrangement, HashKey will leverage its institutional network and digital asset experience to connect traditional financial institutions with digital asset service providers. The company said it will support the design and launch of business models that can operate across different Asian markets. According to its official announcement, HashKey has established business relationships in the Philippines, Vietnam, Indonesia, Malaysia, Thailand and United Arab Emirates.

Kbank will evaluate whether the proposed model complies with South Korean financial regulations and whether it can operate within the country's banking system. BPMG provides technical support through its U.S. subsidiary ARACORE and builds stablecoin-based payment and settlement infrastructure. South Korean media reported that the three companies also plan to study the actual remittance pattern between South Korea and Hong Kong.

Cha Ji-hoon, CEO of BPMG, said: "This cooperation will be a critical moment to accelerate our global stablecoin financial infrastructure business."

Kbank has previous experience in cross-border blockchain payment testing

This cooperation is based on Kbank's previous blockchain-based remittance work. In April this year, the pure Internet bank partnered with Ripple to conduct a multi-stage proof-of-concept for cross-border transfers. The project tested wallet-based remittances and then entered virtual environments that covered regions such as the United Arab Emirates and Thailand.

HashKey's announcement also mentioned that BPMG had previously cooperated with Kbank to conduct a cross-border payment concept verification involving Thai baht and Korean won stablecoins. The latest agreement incorporates HashKey's digital asset network.

Kbank has approximately 16 million customers, while HashKey conducts digital asset businesses in multiple markets. The parties plan to explore payment and settlement services, but have not disclosed transaction volumes, pilot dates or final technical architecture.

This cooperation comes as Kbank participates in other stablecoin-related projects. South Korean telecom group KT plans to use Kbank, BC Card and its own network infrastructure to build a broader stablecoin platform covering issuance, custody, settlement and payment. The initiative is independent of HashKey and BPMG agreements, but also involves Kbank in several ongoing digital asset payments projects.

South Korea pushes ahead with Korean won stablecoin regulation

South Korea is developing a broader legal framework for digital assets and stablecoins. According to the latest roadmap, the authorities plan to establish legal rules covering the issuance and circulation of Korean won stablecoins under the framework of the Basic Law on Digital Assets. The roadmap also covers cross-border stablecoin trading, central bank digital currency pilots, and tokenized government bonds.

However, the regulatory framework is still being improved. The Bank of Korea supports a bank-led Korean won stablecoin issuance model, while lawmakers and regulators are still discussing which companies should be allowed to issue tokens. The discussion has led to delays in broader digital asset legislation.

South Korea has also strengthened its supervision of overseas encrypted transfers. Under the amendment to the Foreign Exchange Transactions Law, companies that handle cross-border virtual asset transfers need to meet new registration requirements. These rules further incorporate overseas digital asset transfers into the country's foreign exchange regulatory system.

For HashKey, the memorandum expands a series of collaborations that connect digital assets with traditional financial services. Earlier in July, HashKey Exchange, Shanghai Commercial Bank and Visa jointly launched a joint credit card in Hong Kong. The rewards can be exchanged for Hong Kong dollar vouchers, which users can use to purchase cryptocurrency or pay transaction fees. The latest agreement focuses on payment and settlement infrastructure rather than consumer rewards.

HashKey, Kbank and BPMG will next work on technical design, regulatory review and potential cross-border use cases for Korean won stablecoins. At present, the three companies have not disclosed the launch time of the pilot, which countries will participate in addition to the markets mentioned, and whether future services will be open to retail users.