Lambda256, K Bank, and KSNET launch on-chain AML and FDS PoC

NBNTV = Reporter Ban Jae-dong | Lambda256 has commenced a Proof of Concept (PoC) for digital asset off-ramp and on-chain Anti-Money Laundering (AML) and Fraud Detection System (FDS) technologies in collaboration with K Bank and KSNET.

The three companies held a project kick-off meeting at the Lambda256 headquarters on the 6th and agreed to conduct a joint demonstration for approximately five months.

This technical verification focuses on confirming the operational feasibility of an off-ramp-linked settlement model that converts settlement funds into Korean Won after digital asset payments.

Furthermore, the project will verify the processes of digital asset remittance, payment, and settlement, as well as the settlement procedures, operating systems, compliance, and roles of participating institutions for both banks and payment specialists.

In this demonstration, K Bank will be responsible for the off-ramp operating system, including foreign exchange (FX) application, Korean Won payments, Anti-Money Laundering (AML), and Suspicious Transaction Reporting (STR).

KSNET will handle the digital asset payment infrastructure and Korean Won settlement for merchants. Lambda256 will support the on-chain settlement system through its digital asset orchestration platform 'SCOPE' and its on-chain compliance platform 'CLAIR'.

The demonstration will be conducted using USDC. The entire process—from applying the exchange rate at the time of payment to generating settlement requests, AML/FDS verification, payment approval, on-chain settlement, Korean Won payment, transaction monitoring, and suspicious transaction reporting—is scheduled to be verified.

Jeong Ui-jeong, CEO of Lambda256, stated, "To operate digital asset services stably, the operating systems of financial institutions are crucial. We will continuously advance our platforms to support the introduction of digital asset services in the financial sector."

Park Hanguk, CEO of KSNET, added, "A stable compliance system is necessary for the digital asset payment ecosystem. We will cooperate with both companies to verify the digital asset off-ramp model."