Dunamu, the operator of the cryptocurrency exchange Upbit, announced on February 27 that it has successfully completed a proof of concept for a blockchain-based cross-border remittance service. The initiative was carried out in collaboration with Hana Financial Group and represents a key step toward modernizing international money transfer infrastructure.
According to the companies, the completed trial demonstrated that blockchain technology can be applied to international remittances in a way that meaningfully improves efficiency. The proof of concept focused on validating whether blockchain-based messaging could replace conventional financial communication systems that have long formed the backbone of cross-border payments.
Replacing Legacy Messaging Systems
As part of the technical verification process, the project replaced traditional remittance messages that were previously exchanged between the domestic and overseas branches of Hana Bank using the SWIFT network. In the new model, those messages were instead transmitted through a blockchain-based system built on GIWA Chain, a layer 2 blockchain developed internally by Dunamu.
The participants indicated that this change allowed remittance data to move more directly between sending and receiving institutions. By removing multiple intermediaries and simplifying message routing, the blockchain-based approach was shown to reduce both transaction costs and processing times when compared with the traditional framework.
Cost and Speed Improvements Highlighted
The companies involved in the trial confirmed that the blockchain-based system delivered measurable gains in efficiency. Remittance fees were significantly reduced, and settlement times were shortened, addressing two of the most persistent pain points in international money transfers. These improvements were attributed to the streamlined structure of blockchain messaging and the elimination of delays commonly associated with legacy financial networks.
The results suggest that blockchain infrastructure could play a meaningful role in reshaping cross-border remittances, particularly for institutions seeking faster settlement cycles and lower operational expenses without compromising reliability.
Privacy and Security Through Advanced Cryptography
To strengthen security and data protection, Dunamu applied its proprietary privacy protocol known as BOJAGI. The protocol is built on zero-knowledge proof technology, which allows transaction validity to be verified without exposing sensitive information. Through this approach, the system maintains transparency at the network level while ensuring that personal and financial details of senders and recipients remain protected.
The companies explained that this balance between transparency and privacy is critical for financial applications, especially in cross-border contexts where regulatory compliance and data security requirements are particularly stringent. The successful application of the BOJAGI protocol during the trial was presented as a key factor in demonstrating the viability of blockchain-based remittance services for real-world use.
Foundation for Future Remittance Infrastructure
The completed proof of concept represents the first major milestone under the memorandum of understanding signed between Dunamu and Hana Financial Group in December of the previous year. Building on this initial success, the two organizations plan to expand their cooperation by the third quarter to develop next-generation remittance infrastructure.
Future phases are expected to focus on a deposit token-based model. Under this structure, cash deposited by customers would be issued as digital deposit tokens, which could then be transferred directly between originating and receiving remittance channels. This approach is intended to further streamline settlement processes while maintaining a clear link between digital representations and underlying fiat deposits.
Implications for the Financial Sector
The collaboration highlights a growing interest among traditional financial institutions in leveraging blockchain technology to modernize core payment systems. By combining Dunamu’s blockchain expertise with Hana Financial Group’s banking infrastructure, the project illustrates how fintech and legacy finance can work together to address long-standing inefficiencies.
As global demand for faster and more cost-effective remittance services continues to rise, the successful completion of this proof of concept positions both companies to play a role in shaping the future of cross-border payments.
