Lambda256, a Dunamu affiliate and blockchain company, said on July 7 it has begun a proof of concept with K Bank and KSNET on a digital asset off-ramp and on-chain AML and FDS technology verification.

The proof of concept focuses on whether financial institutions can actually operate an off-ramp-linked settlement model that converts settlement funds into won after digital asset payments.

Beyond verifying digital asset remittance, payment and settlement functions, the bank and payment services company will jointly check the settlement process and operating framework, compliance and roles and responsibilities among participating institutions.

K Bank, as a bank, will handle the off-ramp operating framework including applying foreign exchange rates, paying out won, anti-money laundering and suspicious transaction reporting. KSNET, a payment services company that has operated merchant payments and settlements, will provide digital asset payment infrastructure and link it to won settlement for merchants. Lambda256 will support the on-chain settlement execution framework through its digital asset orchestration platform SCOPE and on-chain compliance platform CLAIR.

The demonstration will use USDC tokens. Items to be verified include applying FX at the time of payment, creating settlement request generation, AML/FDS verification, payout approval, executing on-chain settlement, and monitoring transactions and suspicious transaction reporting after won payout.

Lambda256 CEO Eui-jeong Jeong (정의정) said, "The core competitiveness in the digital asset era is not simply technology that enables the use of digital assets, but securing a framework for financial institutions to operate them safely and transparently." He added, "Based on SCOPE and CLAIR, Lambda256 will continue to advance a digital asset operations platform that connects on-chain execution and compliance, and plans to build a foundation for the financial sector to introduce digital asset services more stably."