Hong Kong-listed digital asset firm HashKey said on July 21 it signed a memorandum of understanding (MOU) with South Korea’s KBank, an internet-only bank, and South Korean blockchain and AI company BPMG Group to develop and implement digital asset business models.

The companies will also explore the use of KRW stablecoins in cross-border payments and trade settlement.

Under the proposed partnership, KBank will assess whether the business models comply with rules and can work in South Korea.

BPMG, through its US subsidiary ARACORE, will lead commercial cooperation and provide technical support for stablecoin-based payment and settlement infrastructure.

The deal comes as the Bank of Korea has argued that won-backed stablecoin issuance should remain limited to commercial banks.

The central bank also warned that wider issuance could bypass foreign-exchange reporting rules while lawmakers continue to debate the legal framework.

The agreement also builds on an earlier KBank-BPMG partnership on cross-border transfers and payments.

The two companies were in talks on proof-of-concept projects in Thailand and Dubai, rather than completed pilots.

Other South Korean lenders are also exploring bank-led stablecoin infrastructure.

Woori Bank, for example, joined a consortium that explores remittances, merchant settlements, institutional payments, and other cross-border uses.

🔗 Source: HashKey

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