South Korea Tests Blockchain Trade Network to Challenge SWIFT Dominance
South Korea is accelerating its push to modernize cross-border payments, with a new alliance between Dunamu, Hana Financial Group and POSCO International aiming to replace parts of the traditional SWIFT system with blockchain infrastructure.
Summary:
- South Korea launches blockchain trade settlement pilot.
- GIWA Chain aims to merge payment and messaging.
- Project targets real-world industrial transactions.
The three firms signed a memorandum of understanding on April 29 according to local media report. They plan to build a real-time remittance and trade settlement platform. As a result, the initiative focuses on streamlining international payments, especially in large industrial supply chains.
GIWA Chain Targets Real-Time Settlement
At the center of the project sits GIWA Chain, a proprietary Layer-2 blockchain developed by Dunamu. The system merges transaction messaging and settlement into a single process. Consequently, it removes delays that typically slow legacy financial networks.
In traditional systems, payment instructions move separately from actual fund transfers. As a result, multiple intermediaries must coordinate each step. GIWA Chain eliminates that friction by executing both actions simultaneously.
The platform already passed early testing. Earlier this year, Hana Bank and Dunamu replaced internal SWIFT messaging with blockchain-based communication. Therefore, they proved that the system can handle real financial workflows.
Industry, Banking and Crypto Converge
Each participant plays a defined role in the pilot. First, POSCO International provides real transaction data through its global trade operations. The company processes around 40,000 cross-border payments each year, giving the system real scale.
Meanwhile, Hana Financial Group integrates its foreign exchange and compliance infrastructure. This ensures that all transactions meet regulatory standards. At the same time, Dunamu supplies the blockchain layer and manages transaction data.
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Together, these roles create a full-stack financial system. Instead of running isolated tests, the group connects real industry activity with banking and blockchain infrastructure.
Race to Build New Payment Rails
At the same time, South Korea’s financial sector is rapidly evolving. Banks and fintech firms are actively exploring blockchain alternatives to legacy systems. This shift comes as regulators finalize the Digital Asset Basic Act.
In parallel, other institutions are testing on-chain remittance systems across key global corridors. Therefore, competition is increasing to build the next generation of payment rails.
The goal extends beyond efficiency. Instead, firms aim to redesign how cross-border transactions function. By reducing reliance on intermediaries, blockchain systems can lower costs and improve transparency.
Ultimately, the Dunamu-Hana-POSCO alliance positions itself at the center of this shift. If the pilot succeeds, it could prove that blockchain networks can handle large-scale industrial transactions. As a result, it would challenge the long-standing dominance of traditional financial infrastructure.
The information presented in this article is intended for informational purposes only and should not be interpreted as financial, investment, or trading advice. Coinspress.com does not promote or advocate for any particular investment strategy, asset, or cryptocurrency project. Cryptocurrency markets are highly volatile and unpredictable – always perform your own research and seek guidance from a qualified financial professional before making any investment decisions.
Alexander Stefanov
Reporter at CoinsPress
Alex is Editor-in-Chief of Coinspress and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
