BPMG, a blockchain company, said on Jan. 15 it signed a strategic memorandum of understanding with internet-only bank Kbank and UAE-based digital asset services company Changer.ae Limited to cooperate on a stablecoin business.

Under the agreement, the three companies plan to jointly pursue digital asset-based financial businesses and aim to build financial infrastructure using blockchain technology. They will cooperate on digital asset-related services and technology, jointly review stablecoin and blockchain-based businesses, address technical and regulatory responses for a cross-border settlement structure using digital assets, and pursue new businesses based on mutual agreement.

The agreement formalises a cooperative structure as a stablecoin exchange and remittance hub linking South Korea and the UAE. The companies plan to run a pilot cross-border remittance service within the year through bank account integration.

BPMG also plans to expand cooperation with Changer in a project underway in Thailand to build a remittance system using stablecoins between South Korean and Thai banks. BPMG CEO Ji-hoon Cha said the company would combine the financial and technology capabilities of Kbank and Changer to create a de facto global standard for stablecoin remittance infrastructure. He said it would build a digital asset remittance and payment ecosystem linking South Korea, Thailand and the UAE.