PayProtocol, Danal's virtual asset payments specialist, is joining hands with global cross-chain infrastructure company Squid to build a system that enables digital assets across various blockchain networks to be used for payments and settlement at PayCoin affiliates.

PayProtocol said on Sunday it signed a strategic partnership agreement with Squid to connect with the PayCoin mainnet and build multichain payment infrastructure.

Under the agreement, the two companies will conduct a proof of concept linking the PayCoin mainnet with external blockchain networks. They plan to verify whether Squid's cross-chain technology, previously used to move assets between public chains, can be applied to the private-chain-based PayCoin mainnet.

The payment system the two companies are pursuing is designed to let users pay at PayCoin affiliates regardless of the type of virtual asset they hold or the blockchain network it runs on.

They are also pursuing a way for merchants to receive settlement in the digital asset of their choice. Even if a user pays in USDC, a merchant would be able to select settlement in a won-based stablecoin or in assets such as USDT, USDC or PCI.

They plan to use Squid's cross-chain routing technology. The concept is to enable merchants to use various digital assets for payments and settlement without having to build separate infrastructure for network-specific wallets or for asset transfers and exchanges.

The two companies plan to examine the commercial viability of a multichain payment and settlement system based on the technical validation.

PayProtocol Chief Executive Shin Jung-wook (신정욱) stressed that the company will build infrastructure that allows users to pay regardless of the chain their assets are on and allows merchants to receive settlement in the assets they want.

Fig (피그), a co-founder of Squid, said the collaboration with PayProtocol would push commercialisation of blockchain payment and settlement technology in everyday life.