KB Kookmin Bank has completed a $100 million blockchain-based digital bond sale, becoming the first South Korean bank to use distributed ledger technology for foreign currency fundraising.
Summary
- KB Kookmin Bank has issued a $100 million blockchain based digital bond, the first foreign currency fundraising deal of its kind by a South Korean bank.
- The two year bond was sold in Hong Kong through HSBC’s Orion platform, reducing settlement time from five business days to three.
- The issuance adds to KB’s growing blockchain efforts, which already include tokenized deposits for government payments and a stablecoin linked card payment system.
According to local media reports, the bank issued the two-year U.S. dollar-denominated bond through a private placement in Hong Kong. The offering was priced at the Secured Overnight Financing Rate (SOFR) plus 0.4 percentage points.
HSBC managed the entire bond offering, using its digital platform, Orion, to complete the process. Kookmin Bank stated that blockchain technology was used at every stage of the bond’s life, from its creation to its final settlement and trading.
The new system allowed for settlements to be finalized in just three business days, a significant improvement over the usual five days it takes with standard bond issuances. According to a bank representative, this streamlined process also reduces the risk of settlement failures compared to older methods.
This deal is part of KB Financial Group’s growing involvement with blockchain-based finance, as South Korean banks explore digital asset technology within a regulated framework. Kookmin Bank emphasized that this isn’t just a test run; it’s a real-world example of how blockchain can be used for fundraising.
Kookmin expands blockchain use across payments and finance
Recent initiatives show the lender has been extending blockchain technology beyond capital markets.
Earlier this year, KB Kookmin Card revealed it was working on a new credit card system using Avalanche and OpenAsset. This system would let customers pay with stablecoins from their digital wallets, and if they didn’t have enough in their wallet, it would automatically use their regular credit line to cover the purchase.
Avalanche is expected to handle on-chain issuance, transfers, and settlement, while merchants continue receiving payments through existing card infrastructure. The design preserves conventional card benefits and reward programs while introducing blockchain-based payment functionality.
Government-backed blockchain projects have also included Kookmin Bank among participating institutions. In April, South Korea’s Ministry of Economy and Finance selected a regulatory sandbox project that will use tokenized bank deposits for public sector spending, with a rollout planned for the fourth quarter of 2026.
Nine major banks, like KB Kookmin, Shinhan, Woori, and Hana, are participating in a new project. The government explains that this system links its financial records with a secure digital network. This allows them to set rules for how public money can be spent *before* it’s used, and creates a clear, traceable history of all transactions.
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2026-06-11 12:25