K bank said Tuesday it has launched a proof-of-concept with Lambda256 and KSNET to test how a bank can operate an off-ramp system within a digital asset-based settlement environment.
Working-level officials from the three companies held a kickoff meeting Monday at Lambda256’s headquarters in Gangnam, Seoul, and will conduct a joint pilot over approximately five months.
The proof-of-concept will test whether a financial institution can operate an off-ramp settlement model that converts USDC stablecoin payment proceeds into Korean won. K bank will handle foreign exchange rate application, settlement request generation, AML and fraud detection verification, payment approval, on-chain settlement execution, and transaction monitoring and suspicious transaction reporting after won disbursement.
KSNET provides digital asset payment infrastructure and merchant settlement. Lambda256 — a blockchain specialist and affiliate of Dunamu — supports on-chain settlement via its SCOPE platform and compliance via CLAIR.