LG CNS launches KITL to power Korea’s institutional digital asset push - Chosunbiz

LG CNS has launched a platform bundling the Blockchain infrastructure needed for financial institutions such as banks and brokerages to run stablecoin, tokenized securities (STO), and real-world asset (RWA) businesses.

LG CNS said on the 6th it released the Blockchain infrastructure platform "KITL (Keystone of Institutional Trust Landscape)."

KITL provides functions essential to digital asset businesses, including e-wallets, transaction processing, fee sponsorship, and transaction history collection. Unlike traditional financial transactions, digital asset transactions occur on public Blockchains that financial institutions find hard to control directly. For a financial company to enter the digital asset business, it needs separate infrastructure that can safeguard customer assets, process transactions, and pull transaction histories recorded on the Blockchain into its own systems.

KITL's e-wallet performs electronic signatures when customers store and transfer digital assets. LG CNS applied technology that does not store private keys—which function similarly to account passwords—separately, but instead generates them only at the moment a signature is needed and then discards them.

The e-wallet extends to public Blockchains the technology used in the Bank of Korea's central bank digital currency pilot project "Project Han River." In Project Han River, seven banks and about 80,000 customers participated, completing verification by making real payments at convenience stores and supermarkets.

The transaction processing function tracks the process by which a transaction requested by a financial institution's system is properly handled on the Blockchain and delivers the result. Using the fee sponsorship function, service providers such as banks or card companies can share the Blockchain usage fee, or "gas fee," according to agreed methods.

Transaction history collection pulls only the records related to the financial institution in question from among transaction records on public Blockchains worldwide. For example, an issuer can use it to reconcile the total amount of stablecoins issued with dollar and won deposits, while a stablecoin distributor can use it for settlement, accounting, and audit materials.

LG CNS designed KITL's four functions, including its e-wallet and transaction processing, to be used across multiple digital assets and Blockchain networks. Even when a financial institution expands into multiple digital assets or adds another Blockchain network such as Solana in addition to Ethereum, it can continue to use its existing infrastructure as-is.

LG CNS also built a global partner ecosystem around KITL. It signed MOUs with five leading global Blockchain corporations in areas needed for digital asset businesses. It signed MOUs with five entities, including Circle, the issuer of the USDC stablecoin, as well as Securitize, Canton Foundation, Chainalysis, and Chainlink.

Kim Hong-geun, executive vice president and head of LG CNS's Digital Business Division, said, "By providing essential infrastructure for digital asset businesses alongside global partnerships through KITL, we will help financial institutions launch services as soon as regulations take effect."