Dunamu completes proof of concept with Hana Financial Group for overseas remittance technology based on 'GIWA Chain'

Dunamu, the operator of Upbit, said on the 27th that it has completed a proof of concept (PoC) with Hana Financial Group for a blockchain-based overseas remittance service.

Specifically, the PoC converted remittance messages that had been exchanged between Hana Bank’s domestic and overseas branches via the existing SWIFT (Society for Worldwide Interbank Financial Telecommunication) network into blockchain messages. The messages were implemented on Dunamu’s layer-2 blockchain, 'GIWA Chain'. Dunamu said the validation confirmed the potential to reduce remittance fees and improve processing speed.

Dunamu’s privacy protocol, 'BOJAGI', was also used in the process, according to the company. BOJAGI is based on zero-knowledge proof technology and is designed to prevent the disclosure of sensitive information about senders and recipients.

The PoC marks the first outcome of the memorandum of understanding (MOU) the two companies signed in December last year for the joint development of financial services using blockchain technology. Since signing the MOU, the partners have jointly reviewed ways to apply blockchain technology to traditional financial services, including foreign-exchange operations.

Separately, the two companies plan to expand their cooperation by building an overseas remittance infrastructure using deposit tokens by the third quarter of this year. The concept is to issue customers’ deposits in token form and handle processes such as token issuance, transfer and settlement on GIWA Chain.

Oh Kyung-seok, CEO of Dunamu, said, "This PoC, which innovated the existing SWIFT framework with GIWA Chain, is a first step in proving that blockchain can become a new standard for global financial infrastructure beyond being a mere technology," adding, "We will continue pursuing challenges that can lead the future financial ecosystem based on global Web3."

Lee Eun-hyung, vice chairman of Hana Financial Group, said, "It is meaningful that Hana Financial Group and Dunamu signed an MOU and were able to produce results within a short period of time," adding, "Hana Financial Group will continue its efforts to innovate traditional finance through the adoption of technologies, including digital assets, and deliver greater value to customers."