K-STAR (KRW Stablecoin Tech Alliance for Revolution), a won stablecoin-based digital currency infrastructure technology alliance that includes AhnLab Blockchain Company, AhnLab's blockchain-focused subsidiary, said on Sunday it completed a proof of concept with BNK Busan Bank to verify blockchain-based payment and settlement infrastructure for the digital transformation of local currency.

The project was launched to introduce a blockchain-based digital local currency and to implement an integrated end-to-end process, from issuance and distribution to payment and settlement, of a "policy-based local currency" that embeds policy conditions such as usage locations and validity periods. It also aimed to verify operational feasibility in a real financial environment.

Participants included BNK Busan Bank, AhnLab Blockchain Company, OpenAsset, Kaia and Lambda256. The participating organisations divided responsibilities by area of expertise and verified interoperability.

BNK Busan Bank designed a won stablecoin-based policy local currency model reflecting the current local currency operating structure, and verified key functions such as top-ups, payments and settlement. AhnLab Blockchain Company led project design and implemented the user wallet, transaction and settlement structure, while OpenAsset handled stablecoin issuance and asset consistency management. Kaia provided the mainnet environment, and Lambda256 supported node infrastructure operations and transaction flow monitoring, confirming the feasibility of a digital local currency operating system in which issuance, infrastructure, settlement and security are organically linked.

K-STAR stressed that the key outcome of the proof of concept was the implementation of "programmable money" beyond simple token transfers.

Joo-young Lim (임주영), head of AhnLab Blockchain Company, said the project was meaningful in that it verified digital currency-based local currency services can operate stably in a real environment. He said the participants will build a foundation to expand not only the digital transformation of local currency but also into a next-generation financial ecosystem including stablecoins, digital assets and cross-border payment and settlement.