Lambda256, a Blockchain specialist under Dunamu, joined hands with internet-only bank Kbank and payments specialist KSNET to commercialize an off-ramp model that safely and transparently settles, in won, the funds paid with virtual assets (Off-ramp: the cash-out process of converting virtual assets into legal tender).
On the 7th, according to Lambda256, the three companies agreed to jointly conduct, over the next five months, a proof of concept (PoC) for virtual asset off-ramp and on-chain (On-Chain: network on the Blockchain) anti-money laundering (AML) and fraud detection system (FDS) technologies.
The core of this PoC is whether the "off-ramp linked settlement model," which converts settlement funds into won after virtual asset payments, operates smoothly in a real financial environment. When virtual assets are incorporated into the institutional framework in the future, it will proactively examine financial institutions' compliance and operating systems.
The demonstration will be conducted using USDC, a dollar-based stablecoin issued by Circle in the United States. From applying the exchange rate (FX: foreign exchange) at the time of payment and settlement requests, to AML and FDS verification, on-chain settlement execution, final payment in won, and suspicious transaction reports (STR: suspicious transaction report), the three companies plan to test the entire operating procedure.
Kbank will handle real-time exchange rate application and final payment in won, and oversee the off-ramp operating framework, including bank-standard AML and STR. KSNET will provide virtual asset payment infrastructure based on its know-how in merchant payment operations.
They will also review linked won settlements for merchants and operating policies tailored to real-world business environments. Lambda256 will apply its proprietary virtual asset platform "SCOPE" and on-chain compliance platform "CLAIR" to support on-chain settlement execution and demonstrate the platforms' effectiveness.
Jung Eui-jung, CEO of Lambda256, said, "The key competitiveness in the era of virtual assets depends on how safely and transparently financial institutions can operate them," adding, "Through platform advancement, we will lay the groundwork for the financial sector to stably introduce virtual asset services."