KBank is strengthening its blockchain transaction analysis capabilities and anti-money laundering (AML) framework to prepare for the institutionalisation of digital assets, including stablecoins.

KBank said on Tuesday it has adopted blockchain compliance specialist Bonanza Factory's blockchain transaction analysis solution, TranSight.

TranSight is a Know Your Transaction (KYT) solution that analyses wallet addresses and transaction flows on the blockchain to assess risk linked to money laundering and other financial crimes.

If Know Your Customer (KYC) is a procedure to verify a customer's identity, KYT analyses the flow of funds and risk in individual transactions.

TranSight analyses transaction risk based on a range of information, including high-risk wallets and addresses linked to crimes in South Korea. Bonanza Factory said it supports transaction analysis tailored to South Korea's financial environment by using data accumulated through research and cooperation with domestic investigative agencies.

The scope of cooperation between KBank and Bonanza Factory will also expand. KBank has used Bonanza Factory's TranSafer won deposit and withdrawal solution to support won deposit and withdrawal operations at digital asset exchanges.

With the adoption of TranSight, the companies' cooperation will expand from won deposit and withdrawal services to analysis of on-chain fund flows and transaction risks.

KBank plans to strengthen its on-chain transaction monitoring capabilities and continue to advance its AML and risk management framework in line with future institutional changes related to digital assets and shifts in the financial environment.

It also plans to continue expanding cooperation with global financial institutions and conducting related technical verification to prepare for the institutionalisation of stablecoins.

A KBank official said, "We are systematically preparing for the institutionalisation of stablecoins by expanding cooperation with global financial institutions and conducting technical verification." The official added, "We will continue preparing so that we can introduce safe and innovative digital asset financial services."