LG CNS Launches Digital Asset Infrastructure Platform 'KITL' to Support Financial Sector Businesses

LG CNS said on the 6th that it has launched a digital asset infrastructure platform, "KITL." The platform is aimed at supporting digital asset businesses at financial institutions.

LG CNS has integrated the blockchain infrastructure needed for financial institutions to operate digital asset services into a single platform. Through this, it has bundled the relevant functions into a common platform so that financial institutions do not have to build them separately.

KITL applies to stablecoins, STOs, and RWA. The platform is designed to provide a common foundation as the scope of business expands.

KITL is built as a common infrastructure for operating digital asset services based on public blockchains. The common infrastructure covers asset custody, transaction processing, and record retention, while the functions it provides include digital wallets, transaction processing, fee sponsorship, and transaction history collection. The digital wallet stores customers' digital assets and handles electronic signatures during transactions.

It does not use HSM for long-term storage of private keys. Private keys are generated when a signature is needed and discarded after use, and the related patent registration has also been completed.

The technology is an extension of the digital wallet technology used in the Bank of Korea's central bank digital currency pilot project, "Project Hangang," to a public blockchain environment. Seven banks and about 80,000 customers took part in "Project Hangang," and the technology was verified in real payment environments such as convenience stores and supermarkets.

The technology includes a function that tracks whether a transaction requested by a financial institution's system was properly processed on the blockchain, as well as a function that delivers the processing results. It also includes a fee sponsorship function that supports sharing gas fees, the fees used on blockchains, and the standard for this is set by the service provider.

It also has a function to selectively collect only transactions related to the relevant financial institution from the full record of the public blockchain. The transaction history gathered in this way can be used to compare stablecoin issuance with deposits, and it is also intended for settlement, accounting, and audit work.

LG CNS designed the technology so it can be commonly applied across multiple digital assets and blockchain networks. Assets targeted for expansion include deposit tokens, tokenized securities, and stablecoins, while networks can be added beyond Ethereum to include Solana, among others. Accordingly, existing infrastructure can be used when expanding the business or adding other networks.

LG CNS has expanded cooperation with global blockchain companies in line with the platform's expansion. LG CNS has signed separate memorandums of understanding with five companies: Circle Internet Group, Securitize, Canton Foundation, Chainalysis, and Chainlink.

The areas of cooperation are divided by field. LG CNS will work with Circle to develop digital asset infrastructure and solutions suited to Korea's technological and regulatory environment, and with Securitize to jointly develop tokenization methods for financial products such as funds and bonds. It will also cooperate with Canton Foundation on building infrastructure to support domestic financial institutions' participation in the Canton network.

In the areas of security and data linkage, LG CNS is collaborating with Chainalysis and Chainlink. LG CNS plans to link Chainalysis' transaction monitoring function with KITL so it can detect and block whether criminal funds are flowing into wallets. In addition, LG CNS plans to pursue a plan to combine external data linkage capabilities with blockchain interoperability functions in collaboration with Chainlink.

Kim Hong-geun, executive vice president and head of LG CNS's Digital Business Division, said that LG CNS is willing to provide the infrastructure needed for digital asset businesses and plans to co-provide it based on global partnerships. He added that the goal is to support financial institutions so they can launch services immediately as regulations take effect.

Source: TECHWORLD · Kim Seung-gi
Original: https://www.epnc.co.kr/news/articleView.html?idxno=407778

References

• https://www.epnc.co.kr/news/articleView.html?idxno=407778