KB Financial Group has completed a technology verification covering the full process from payments and settlement to overseas remittances based on a won stablecoin.

KB Financial said on May 17 it successfully completed a proof of concept integrating the entire process of payments, settlement and overseas remittances based on a won stablecoin with electronic payments firm KG Inicis, global layer-1 blockchain platform Kaia and digital asset solutions firm OpenAsset.

The project is an integrated demonstration case that connected the full flow of financial services, from issuing a won stablecoin to offline payments, merchant settlement and overseas remittances. It kept the existing way of using financial services while switching the internal settlement structure to a blockchain-based system.

The real-world payment model was implemented through an offline kiosk at coffee chain Hollys. When consumers pay by QR code without installing a separate digital wallet, a blockchain smart contract is executed automatically and settlement is carried out.

In the overseas remittance verification, the process was implemented in which the won stablecoin was converted into a dollar stablecoin using Kaia's on-chain liquidity and then remitted via a local partner in Vietnam to an actual bank account. Unlike the existing SWIFT method that took from several hours to several days, the entire process was completed within 3 minutes, and fees were reduced by about 87 percent compared with existing levels.

KB Financial highlighted that the differentiating point of the verification was that it directly designed the entire process from issuance to remittance. It plans to build operational capabilities as well to immediately launch an actual service in line with the timing of future legal and institutional changes related to digital assets.

A KB Financial official said, "It is important to reduce dependence on overseas platforms and for the domestic financial sector to proactively secure operational capabilities." The official added, "Based on verified stability and trust, we will provide daily-life digital financial services that combine blockchain technology."