KB Financial Tests Stablecoin-Based FX Trading Technology, Verifies Dollar Exchanges

KB Financial Group has completed a proof of concept for stablecoin-based foreign-exchange trading technology.

Seoul Economic Daily reported on April 28 that KB Financial worked with blockchain infrastructure company Suho.io on the test. The proof of concept verified exchanges between stablecoins and dollar assets, real-time settlement and the automated execution of trading conditions.

The test was conducted on Suho.io’s foreign-exchange settlement infrastructure. Users input exchange rates and trading conditions, and stablecoins and dollar assets are exchanged automatically when those conditions are met.

KB Financial also reviewed smart-contract standards as part of the process. It tested whether compliance features embedded in trading rules would function in an actual FX transaction flow, including know-your-customer and anti-money-laundering checks, transaction suspensions and the freezing of specific addresses.

The report said the group also drew on structures used by global issuers such as Circle and Paxos to establish its own smart-contract standards.

KB Financial is also running technical tests across the full process, including issuance, remittance and settlement, while expanding cooperation with digital-asset custodians and payments companies, the report said.