HashKey taps Kbank, BPMG in South Korea stablecoin payments push

HashKey Group has signed a memorandum of understanding with South Korea’s Kbank and blockchain technology company BPMG Group to develop digital asset business models focused on payments and settlement.

The agreement forms part of HashKey’s “Asia Connect” strategy and will examine the use of Korean won-backed stablecoins for cross-border payments and trade settlement. HashKey said the three companies will combine its digital asset infrastructure, Kbank’s banking services and BPMG’s technical capabilities to design and test new financial systems. 

The companies have not announced a launch date or confirmed a commercial stablecoin product. Their work will remain subject to regulatory approval and local compliance requirements.

The MOU is not an announcement of a live stablecoin or remittance service. Instead, it creates a framework for the companies to test business models, assign operational roles and prepare systems that could be used if South Korean regulators approve the relevant services.

HashKey, Kbank and BPMG divide roles under the new agreement

Under the proposed cooperation, HashKey will use 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 rollout of business models that can operate across different Asian markets. 

HashKey has existing business relationships in the Philippines, Vietnam, Indonesia, Malaysia, Thailand and the UAE, according to its official announcement.

Kbank will assess whether the proposed models can meet South Korea’s financial rules and operate within the country’s banking system. BPMG, working through its U.S. subsidiary ARACORE, will provide technical support and build stablecoin-based payment and settlement infrastructure. South Korean reports said the companies also plan to study a practical remittance model between South Korea and Hong Kong. 

“This collaboration will serve as a pivotal moment to accelerate our global stablecoin financial infrastructure business,” said BPMG CEO Cha Ji-hoon.

Kbank builds on earlier cross-border blockchain payment tests

The new partnership follows Kbank’s earlier work on blockchain-based remittances. As crypto.news reported in April, the internet-only bank partnered with Ripple on a multi-stage proof of concept for cross-border transfers. The project tested wallet-based remittances and later moved into a virtual environment covering corridors that included the UAE and Thailand.

HashKey’s announcement also said BPMG previously worked with Kbank on a proof of concept involving KRW stablecoin-based cross-border payments in Thailand and the UAE. The latest agreement adds HashKey’s digital asset network to that work. 

Kbank serves about 16 million customers, while HashKey operates digital asset businesses across several markets. The parties plan to explore payment and settlement services, but they have not disclosed transaction volumes, pilot dates or a final technical structure.

The partnership also comes as Kbank takes part in other stablecoin-related projects. As previously reported, South Korean telecom group KT plans to use Kbank, BC Card and its own network infrastructure in a wider stablecoin platform covering issuance, custody, settlement and payments. That plan remains separate from the HashKey and BPMG agreement, but it places Kbank in several ongoing digital asset payment projects.

South Korea moves toward rules for won-backed stablecoins

South Korea is working on a broader legal framework for digital assets and stablecoins. According to the latest roadmap, authorities plan to establish legal rules covering won-backed stablecoin issuance and circulation under the planned Digital Asset Basic Act. The roadmap also covers cross-border stablecoin transactions, central bank digital currency pilots and tokenized government bonds.

However, the regulatory framework is still developing. The Bank of Korea has backed a bank-led model for won stablecoin issuance, while lawmakers and regulators continue to discuss which companies should be allowed to issue the tokens. The debate has contributed to delays around the wider digital asset legislation.

South Korea has also tightened oversight of overseas crypto transfers. As previously reported, firms handling cross-border virtual asset transfers face new registration requirements under amendments to the Foreign Exchange Transactions Act. The rules bring overseas digital asset transfers further into the country’s foreign-exchange oversight system.

For HashKey, the MOU extends a series of partnerships connecting digital assets with traditional financial services. Earlier in July, HashKey Exchange, Shanghai Commercial Bank and Visa launched a co-branded credit card in Hong Kong. Its rewards can be converted into HKD vouchers that users may apply toward crypto purchases or trading fees.

The latest agreement takes a different route by focusing on payment and settlement infrastructure rather than consumer rewards. HashKey, Kbank and BPMG will now work on technical design, regulatory review and potential use cases for KRW stablecoins across borders. 

The companies have not said when a pilot will begin, which countries will join beyond the markets already discussed, or whether any future service will be available to retail users.