KB Kookmin Bank raises $100m through blockchain powered digital bond sale

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.

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 acted as the sole bookrunner for the transaction, while issuance took place on Orion, the bank’s digital asset platform. Kookmin Bank said the deal used blockchain technology throughout the bond’s lifecycle, covering issuance, registration, trading, and settlement.

Under the new structure, settlement was completed in three business days instead of the five days typically required under conventional bond issuance processes. A bank official told local media that the approach simplifies procedures and lowers settlement default risk compared with traditional methods.

The transaction adds to a series of blockchain-based financial projects pursued by KB Financial Group as South Korea’s banking sector tests digital asset infrastructure in regulated environments. Kookmin Bank described the issuance as a practical application of blockchain technology in real-world fundraising rather than a limited pilot or proof-of-concept exercise.

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 announced plans to develop a hybrid stablecoin credit card system with Avalanche and OpenAsset. According to local reports at the time, the system would allow customers to spend stablecoins held in blockchain wallets while automatically drawing on a traditional credit line whenever wallet balances are insufficient.

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 banks, including KB Kookmin, Shinhan, Woori, and Hana, are involved in that initiative. According to the ministry, the system connects the government’s Digital Budget and Accounting System with a distributed ledger network, allowing spending conditions to be programmed in advance and creating an auditable record of how public funds are used.