K Bank Begins Stablecoin Off-Ramp Proof of Concept with Lambda256 and KSNET
Verification of Payment and Anti-Money Laundering Systems
On July 7, K Bank announced that it has begun a proof of concept (PoC) in collaboration with Lambda256, a blockchain technology company, and KSNET, a comprehensive payment service provider, to verify the operation system of an off-ramp in a digital asset-based settlement environment.
On July 6, working-level staff from K Bank, Lambda256, and KSNET held a kickoff meeting at the Lambda256 headquarters in Gangnam, Seoul, and will proceed with the joint PoC in earnest for approximately five months.
Off-ramp refers to the process or service of converting virtual assets into fiat currency (such as the dollar or won) and transferring them into the actual financial system.
This project aims to verify whether an off-ramp operation model that converts settlement funds into won after digital asset payments can be implemented in a real financial institution environment.
K Bank, as the main settlement institution and bank, will be responsible for the overall off-ramp operation system, including applying the exchange rate (FX), making won payments, anti-money laundering (AML) measures, and suspicious transaction reporting (STR).
KSNET will provide stablecoin payment infrastructure using its existing payment networks and will handle the linkage for merchant settlement payments in won. Lambda256 will support the on-chain settlement execution system through its orchestration platform SCOPE and on-chain compliance platform CLAIR, and will verify the effectiveness of the platform under a financial institution environment.
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A K Bank representative stated, "This project is a meaningful attempt to demonstrate the off-ramp operational capabilities that banks should have in preparation for the institutionalization of digital assets," adding, "We will continue to build a safe and trustworthy digital financial infrastructure to proactively respond to regulatory changes in the future."
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