Nikolas Sargeant
TL;DR
-
South Korean payment service provider NHN has partnered with Avalanche’s Ava Labs to build a payments-focused Layer 1 network.
-
AVAX is up nearly 4% and is now trading at $9.40.
NHN KCP to Build Own Layer 1 on Avalanche
NHN KCP, a leading South Korean payment service provider, has entered into a memorandum of understanding (MOU) with Ava Labs to build a payments-centric Layer 1 blockchain network. This collaboration seeks to leverage Ava Cloud, Ava Labs' platform for companies to create and manage their own L1 blockchains.
The two companies aim to create a mainnet optimized for real-world payment use cases. The partnership will focus on three main areas: ultra-fast payment authorization with sub-one-second processing times, on-chain encryption for secure transaction data, and the development of a customizable payment ecosystem for merchants.
While commenting on this partnership, Jun-seok Park, CEO of NHN KCP, stated that,
"This agreement is highly significant as it combines NHN KCP's industry-leading payment operational expertise with world-class blockchain technology to derive an innovative model that can be immediately applied to real-world business."
To assess the viability of this project, the companies will conduct a proof-of-concept and explore expanding their relationships with global financial and payment companies.
Ava Labs' Head of Asia, Justin Kim, added that the timeline for launching the Layer 1 network depends on the approval of pending cryptocurrency regulations in South Korea.
As part of the partnership, Ava Labs and NHN KCP will also explore new business avenues within digital commerce, such as tokenized deposit models, multi-stablecoin settlement systems, and cross-border payments.
This latest development comes as Avalanche has been significantly expanding its presence in South Korea, collaborating with local financial institutions looking to build blockchain infrastructure.
In March, KB Kookmin Card, one of the largest credit card companies in South Korea, revealed plans to integrate a hybrid stablecoin payment model with Avalanche. The system will link credit cards to digital wallets, allowing customers to make payments with both stablecoins and traditional credit.
