LG CNS Launches Digital Asset Blockchain Infrastructure Platform 'KITL'
IT DAILY ·
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LG CNS announced on the 6th the launch of its blockchain infrastructure platform, 'KITL.'
KITL provides infrastructure that banks, securities firms, card companies, and payment companies can use when building digital asset services, and it supports stablecoins, tokenized securities (STO), and real-world assets (RWA).
It also includes four functions — digital wallets, transaction processing, fee sponsorship, and transaction history collection — as well as MOUs with 5 global partners.
LG CNS announced on the 6th the launch of its blockchain infrastructure platform, "KITL (Keystone of Institutional Trust Landscape)." KITL provides infrastructure that banks, securities firms, card companies, and payment companies can use when building digital asset services. It supports stablecoins, tokenized securities (STO), and real-world assets (RWA).
LG CNS said traditional financial institutions have recorded and managed customer transaction histories in their own systems. In contrast, it said digital asset transactions are carried out on public blockchains that anyone can join.
For this reason, LG CNS said customer assets move outside the direct control of financial institutions in the digital asset transaction area. It added that when pursuing digital asset businesses, new infrastructure is needed for asset custody, transaction processing, and record retention.
According to LG CNS, KITL is designed to meet this demand by supporting four functions: digital wallets, transaction processing, fee sponsorship, and transaction history collection.
A digital wallet plays a role similar to a bank account, storing digital assets and handling electronic signatures when assets are transferred. In this case, the private key corresponds to an account password. In general, private keys are stored in an HSM for key generation and management, but HSMs have limited storage capacity.
LG CNS applied a method that does not store private keys. Under this method, a private key is generated only when a signature is needed, then discarded after use. LG CNS said this makes it possible to issue wallets for tens of millions of customers without adding equipment, and that patent registration for the method has also been completed.
KITL's digital wallet expands on technology applied in the "Project Hangang." The scope of the expansion has widened from private blockchains to public blockchains. "Project Hangang" was a Bank of Korea digital currency proof-of-concept project involving 7 banks and about 80,000 customers, and it tested the technology in a real payment environment, including convenience stores and supermarkets.
This KITL includes a transaction processing function that tracks the blockchain processing status of transactions requested by financial institution systems and delivers the results. It also includes a fee sponsorship function that shares blockchain usage fees, or gas fees, and the basis for sharing gas fees is a structure set in advance by service providers such as banks and card companies. In addition, it provides a transaction history collection function that gathers only the records related to the relevant financial institution from transaction records on public blockchains around the world. The collected information can be used by issuers to compare the total amount of stablecoins issued with dollar and won deposits, and distributors can use it as settlement, accounting, and audit data.
LG CNS presented scalability as a strength of KITL. The company said the four functions were designed to be used commonly across multiple assets and blockchain networks so that they would not be tied to a specific asset or network. As a result, financial institutions can use their existing infrastructure even if the types of digital assets expand, and they can also use their existing infrastructure if other blockchain networks such as Solana are added alongside Ethereum.
LG CNS said it positioned KITL as the foundation for its digital asset business and built a global partner ecosystem around it. LG CNS signed MOUs with 5 global blockchain companies in different digital asset business areas, and the partners are Circle, the issuer of the stablecoin USDC; Securitize, a tokenized securities issuance and management platform company; Canton Foundation, a financial transaction blockchain foundation; Chainalysis, a blockchain intelligence platform company; and Chainlink, a company that provides external blockchain data and connects heterogeneous blockchains.
Kim Hong-geun, vice president and head of LG CNS's Digital Business Division, said the company will provide the essential infrastructure for digital asset businesses together with global partnerships through KITL. He added that the company aims to help financial institutions launch services as soon as regulations take effect.
Source: IT DAILY · Yang Seung-gap
Original: https://www.itdaily.kr/news/articleView.html?idxno=242027
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Source: IT DAILY
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