In a milestone for blockchain adoption in traditional finance, Dunamu has signed a Memorandum of Understanding (MOU) with Hana Financial Group And POSCO International to build a real-time overseas money transfer service on the GIWA chain. This partnership aims to replace the decades-old SWIFT network with a faster, more efficient, blockchain-based system.
GIWA Chain: The Layer 2 Blockchain for Global Finance
The core of this agreement revolves around Dunamu Layer 2 blockchain, GIWA chain. The three companies will connect this blockchain to Hana Financial Group’s extensive currency network and POSCO International’s global supply chain. This integration enables real fund flows to be processed on-chain, bypassing traditional intermediaries.
Dunamu, the operator of Upbit, South Korea’s largest cryptocurrency exchange, designed the GIWA Chain specifically for high-volume, low-fee transactions. The blockchain uses an Ethereum-compatible architecture, making it easy to adopt existing financial systems. By using this technology, the partnership aims to reduce transfer times from days to seconds.
Replacement of the SWIFT network with Blockchain technology
The three companies plan to continue technical verification for the transition from the existing one Association for Worldwide Interbank Financial Telecommunications (SWIFT) network to the GIWA Chain blockchain. Founded in 1973, SWIFT processes more than 40 million messages every day but suffers from slow settlement times and high fees, especially for cross-border payments.
Blockchain technology offers a transparent, immutable and almost instantaneous alternative. The GIWA Chain initiative focuses on a specific pain point: international money transfers. According to the World Bank, global financial flows will reach more than $800 billion by 2023, with average fees of more than 6%. Blockchain-based systems can reduce these costs to less than 1%.
Technical verification and pilot testing
The MOU outlines a phased approach. First, the partners will conduct a technical verification of GIWA Chain’s ability to meet real-time gross settlement (RTGS) requirements. This includes stress testing the network for high throughput, security and compliance with South Korean financial regulations.
Secondly, a pilot overseas money transfer service will be launched, initially targeting POSCO International’s supply chain partners. POSCO International, a global trading and energy company, processes thousands of cross-border payments every month. Using GIWA Chain, these payments can be settled in stablecoins or central bank digital currencies (CBDCs) pegged to the Korean won.
Hana Financial Group’s role in digital finance
Hana Financial Group brings its extensive currency network to the table. As one of South Korea’s largest financial holding companies, Hana has offices in more than twenty countries. Her expertise in currency conversion and regulatory compliance is critical to the success of the project.
The partnership also aims to establish a financial infrastructure for efficient global fund management and payment settlements. This includes developing smart contracts that automate currency hedging and settlement, reducing operational risks for companies.
Real-world applications: from supply chains to money transfers
The GIWA Chain Initiative has direct practical applications. For example, POSCO International’s supply chain spans multiple currencies and jurisdictions. By using GIWA Chain, the company can process invoices in real time, improving cash flow and reducing dependence on expensive banking intermediaries.
For individual money transfers, the service could benefit millions of overseas Korean workers. According to the Bank of Korea, outward remittances from South Korea exceeded $20 billion in 2023. A blockchain-based system could save these workers hundreds of millions in compensation annually.
Comparison: SWIFT vs GIWA chain
Expert Perspectives on Blockchain Transfers
Financial technology analysts see this partnership as an important step toward mainstream blockchain adoption. Dr. Kim Soo-hyun, a professor of fintech at Seoul National University, notes that “the involvement of a major financial group and a global trading company confirms the utility of blockchain beyond cryptocurrency speculation.”
However, challenges remain. Regulatory hurdles, particularly around anti-money laundering (AML) and know-your-customer (KYC) compliance, require careful navigation. The partners plan to work closely with South Korea’s Financial Services Commission (FSC) to ensure the agency meets all regulatory requirements.
Timeline and future perspective
The MOU covers an initial period of twelve months for technical verification and pilot testing. If successful, a full commercial launch could follow in 2026. The partners did not disclose the exact investment amount, but industry estimates suggest the project will require significant capital for blockchain infrastructure and regulatory compliance.
This development is in line with global trends. Central banks around the world, including the Bank of Korea, are exploring CBDCs for cross-border payments. The GIWA chain could serve as a bridge between traditional financial and digital assets, and potentially integrate with future CBDC systems.
Conclusion
The partnership between DunamuHana Financial and POSCO International will build a money transfer service on the GIWA chain represents a pivotal moment for blockchain in the financial world. By targeting the inefficient SWIFT network, this initiative promises faster, cheaper and more transparent international payments. As technical verification progresses, the success of this project could pave the way for widespread adoption of blockchain in the global financial world.
Frequently asked questions
Question 1: What is GIWA chain?
GIWA Chain is a Layer 2 blockchain developed by Dunamu, designed for fast and cheap transactions. It is compatible with Ethereum and aims to serve as an infrastructure for real-world financial applications.
Question 2: How will this partnership replace SWIFT?
The partners plan to conduct a technical verification to transition cross-border payment processing from the SWIFT network to the GIWA Chain, enabling near-instant settlement at lower costs.
Question 3: Who benefits from this blockchain transfer service?
Both companies and private individuals benefit from it. POSCO International’s supply chain partners benefit from efficient fund management, while overseas Korean employees can send money home at a lower cost.
Question 4: When is the service available?
The MOU covers a period of twelve months for technical verification and pilot testing. If the pilot is successful, a commercial launch could take place in 2026.
Q5: Does this service comply with South Korean regulations?
The partners work with the Financial Services Commission (FSC) to ensure full compliance with AML and KYC regulations. The transparency of the blockchain helps meet these requirements.