LG CNS unveils blockchain tech to help banks issue stablecoins, tokens
LG CNS headquarters in Magok, Gangseo District, Seoul / Courtesy of LG CNS
LG CNS launched a blockchain infrastructure platform designed to help financial institutions build services around stablecoins, tokenized securities and real-world assets as Korea’s financial sector moves toward broader use of digital assets.
The information technology services giant said Tuesday that its new platform, called KITL, provides four core functions: digital wallets, transaction processing, fee payment and transaction data collection.
KITL is designed to address infrastructure needs that arise when financial institutions handle assets on public blockchains, where transactions occur outside systems directly controlled by banks, securities firms and other service providers.
Its wallet system can generate private keys only when signatures are required and discard them afterward, allowing institutions to issue wallets at large scale without continuously expanding hardware security module capacity, the company said.
The technology was developed from work conducted for the Bank of Korea’s Project Hangang, where it was tested in a real transaction environment involving seven participating banks and about 80,000 customers.
KITL tracks blockchain transactions requested by financial institutions and returns their processing status, while its fee-payment function allows service providers to cover blockchain gas fees under predefined arrangements.
Its transaction data function collects relevant records from public blockchains, allowing stablecoin issuers and distributors to use the information for reconciliation, accounting and audits.
LG CNS said the platform is designed to support multiple digital assets and blockchain networks, allowing financial institutions to expand into assets or networks such as Solana without rebuilding core infrastructure.
The company has also signed memorandums of understanding with five global blockchain firms, including Circle Internet Group, Securitize, Canton Foundation, Chainalysis and Chainlink.
LG CNS said partnerships will focus on areas including stablecoin infrastructure, tokenization, participation in the Canton network, transaction monitoring and blockchain connectivity.
This article was published with the assistance of generative AI and edited by The Korea Times.