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Blockchain payment is set to become part of KB Kookmin Bank’s cross-border services as South Korea’s largest lender prepares to launch a new blockchain-based payment network for corporate import and export customers in August 2026.
The rollout will make KB Kookmin the first financial institution in the country to use J.P. Morgan’s Kinexys platform for commercial payment services. The system will initially support U.S. dollar transactions across 10 countries while connecting blockchain settlement with existing SWIFT payment infrastructure.
Blockchain payment links Kinexys with existing banking rails
KB Kookmin announced the service on July 26, following the signing of a blockchain remittance agreement with J.P. Morgan. The first phase will focus on U.S. dollar payments involving South Korea, the United States, Singapore, Saudi Arabia, India, Thailand, Qatar, the United Arab Emirates, Bahrain, and South Africa.
However, the bank has not disclosed customer fees, transaction limits, or the exact launch date in August. Instead, it confirmed that the platform will support businesses involved in overseas trade, supplier payments, and foreign exchange settlement.
Rather than replacing SWIFT, the blockchain payment service will integrate Kinexys with existing correspondent banking infrastructure. This approach allows payment messages and compliance procedures to remain in place while blockchain technology handles settlement.
J.P. Morgan describes Kinexys as a blockchain platform that supports payments, tokenization, and near-real-time settlement.
The platform has already expanded into several markets. In June, J.P. Morgan introduced blockchain deposit accounts in Australian dollars, Hong Kong dollars, Japanese yen, Chinese yuan, and Singapore dollars, increasing Kinexys’ support to eight currencies and enabling round-the-clock payments and programmable treasury functions.
KB Kookmin expands blockchain projects
The new blockchain payment launch follows several digital asset initiatives across KB Financial Group. In June, KB Kookmin completed a $100 million digital bond issuance through HSBC’s Orion platform using blockchain technology throughout issuance, registration, trading, and settlement.
The two-year U.S. dollar bond settled in three business days, rather than the five days required under the previous process.
According to a Cryptopolitan report, KB Kookmin also participates in South Korea’s government-backed tokenized deposit project. The Ministry of Economy and Finance selected nine banks, including KB Kookmin, to test tokenized deposits linked to public-sector spending in the fourth quarter of 2026.
The project will connect the government’s Digital Budget and Accounting System with a distributed ledger network that records transactions while allowing programmed spending conditions.
Earlier this year, KB Kookmin Card also announced plans to develop a hybrid stablecoin credit card system with Avalanche and OpenAsset. The design allows customers to spend stablecoins from blockchain wallets while automatically using a traditional credit line if wallet balances are insufficient.
KB Kookmin joins growing institutional blockchain activity
KB Kookmin was South Korea’s top bank on the list, with assets of roughly $552.76 billion, according to the 2026 Asia Pacific bank review by S&P Global Market Intelligence, which included 28 banks.
The bank’s newest payment service also coincides with the broader institutional adoption of blockchain settlement. J.P. Morgan, Mastercard, Ripple, and Ondo Finance recently conducted a cross-border test of U.S. Treasury redemption, using XRP’s Kinexys to process payment instructions and settle in U.S. dollars, while the tokenized asset was transacted on the XRP Ledger.
J.P. Morgan has also introduced Kinexys with other institutions, including Qatar National Bank, Axis Bank, Mitsubishi Corporation, and EBANX. In July, EBANX announced that it had cut the local banking time during the domain for cross-border transfers from over 24 hours to mere minutes.
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