Danal affiliate Danal Fintech is joining hands with Ava Labs, the developer of the global blockchain platform Avalanche, to strengthen competitiveness in its stablecoin platform.
On the 11th, Danal Fintech said it signed a memorandum of understanding (MOU) on the 3rd (local time) with Ava Labs, located in New York state in the United States. Through this agreement, the two companies plan to cooperate across the board on: ▲ support for blockchain integration and a compliance-focused stablecoin-dedicated mainnet ▲ advising on a stablecoin issuance and operation model that fits Korea's regulatory framework ▲ joint participation in regulatory sandboxes and government-led pilot projects ▲ joint brand promotional campaigns.
Ava Labs is a global blockchain corporations that develops and operates the Avalanche mainnet, touting fast transaction processing speed, scalability, and regulatory compliance as its strengths. Avalanche has been used in major projects, proving practical use cases in the public and financial sectors, including: ▲ FRNT, the first state-level stablecoin issued by the government of the U.S. state of Wyoming ▲ a blockchain network experiment involving global financial firms JPMorgan and Citi ▲ selection as the mainnet for issuing a Japanese yen stablecoin ▲ a commercialization case of a GrabPay–Alipay stablecoin approved by the Monetary Authority of Singapore (MAS).
The collaboration is expected to go beyond a simple technology partnership and serve as a bridgehead for expanding Danal Fintech's stablecoin business. In particular, Avalanche's C-Chain and purpose-built L1 mainnet architecture respectively handle EVM (Ethereum Virtual Machine)-compatible smart contract payment processing and validator management and network governance functions, which observers say aligns with the stable payments network Danal Fintech is pursuing.
A Danal Fintech official said, "The collaboration with Ava Labs is an important stepping stone to establish a stablecoin model that meets domestic and overseas regulatory environments and to provide a stable payment experience for both merchants and users," adding, "We will continue to expand the ecosystem by working with a variety of global partners."