KB Kookmin Bank completes first cross-border deposit token payment test with overseas bank

KB Kookmin Bank has become the first South Korean commercial bank to complete a cross-border payment test using foreign currency-based deposit tokens in partnership with an overseas bank.

The bank announced Thursday that it had successfully verified a cross-border payment scenario using Japanese yen-based deposit tokens with Japan's MUFG Bank through its participation in Project Agora, a global public-private collaboration jointly led by the Bank for International Settlements (BIS) and the Institute of International Finance (IIF).

Project Agora is a global initiative designed to test the efficiency and stability of cross-border payments using deposit tokens and tokenized central bank reserves. Major central banks, including the Bank of Korea, and global financial institutions are participating to assess the viability and operational models of next-generation payment infrastructure.

Unlike the Han River project, which targets the development of domestic payment infrastructure, Project Agora focuses specifically on cross-border payment environments.

KB Kookmin Bank said the test is significant because it marks the first time a South Korean commercial bank has conducted a foreign currency-based deposit token payment test with an overseas partner — even as the legal framework governing such services has yet to be finalized domestically.

Through the test, the bank said it gained the technology and operational experience needed to help build next-generation global payment infrastructure. It added that it plans to continue participating in subsequent phases of Project Agora in compliance with relevant laws, regulatory frameworks and financial authority guidelines, including those governing innovative financial services.

"Project Agora is a meaningful collaboration in which global financial institutions are working together to validate the potential of next-generation global payment infrastructure," a KB Kookmin Bank official said. "We will continue to respond proactively to changes in the global financial environment and strengthen our digital finance competitiveness."