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. According to reports from crypto.news, 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. The three companies will combine HashKey's digital asset infrastructure, Kbank's banking services and BPMG's technical capabilities to design and test new financial systems.
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 will support the design and rollout of business models that can operate across different Asian markets, leveraging existing relationships in the Philippines, Vietnam, Indonesia, Malaysia, Thailand and the UAE. Kbank will assess whether the proposed models can meet South Korea's financial rules and operate within the country's banking system, while BPMG, working through its U.S. subsidiary ARACORE, will provide technical support and build stablecoin-based payment and settlement infrastructure. As reported by crypto.news, the companies also plan to study a practical remittance model between South Korea and Hong Kong.
The MOU is not an announcement of a live stablecoin or remittance service, instead creating a framework for the companies to test business models and prepare systems. According to crypto.news, their work will remain subject to regulatory approval and local compliance requirements. South Korea is working on a broader legal framework for digital assets and stablecoins, with authorities planning to establish legal rules covering won-backed stablecoin issuance and circulation under the planned Digital Asset Basic Act. The regulatory framework is still developing, with the Bank of Korea backing a bank-led model for won stablecoin issuance, while lawmakers and regulators continue discussions on which companies should be allowed to issue tokens.
The partnership follows Kbank's earlier work on blockchain-based remittances, including a multi-stage proof of concept with Ripple covering corridors including the UAE and Thailand. As reported by crypto.news, BPMG previously worked with Kbank on a proof of concept involving KRW stablecoin-based cross-border payments in Thailand and the UAE. Kbank serves approximately 16 million customers, while HashKey operates digital asset businesses across several markets. The companies have not announced a launch date or confirmed a commercial stablecoin product, with no disclosed transaction volumes, pilot dates or final technical structure.
