KG Financial signed a memorandum of cooperation with the Solana Foundation to test stabilization currency payments and block chain settlement in the existing payment network. The potential number of businesses covered by this cooperation is approximately 220,000, which also allows Solana to step up further in the South Korean financial payment system.

The KG Group handles transactions of more than 25 trillion won a year. In accordance with the arrangements disclosed by the parties, subsequent cooperation will revolve around stable currency payments, chained settlement systems and interfaces with existing compliance payment networks. KG Financial also plans to join forces to pay for the business and promote the commercialization process.

Discussions started in April

KG Financial states that the parties have been in contact since April and have completed the joint concept validation around the stable currency distribution and real payment scene. According to the company, the test showed that the model was commercially and technically feasible, and it was decided to continue to advance stable currency payment services and the wider digital asset business.

  • Development of a payment and settlement system based on stable currency
  • Advance the concept validation project on digital payments
  • Access to existing payment infrastructure for block chain functions

Planned access to existing payment operations

This cooperation will also extend to the payment gateway and prepaid card platform already in operation within the KG system. The KG Financial project is being promoted in collaboration with the associated company KG Inicis, and is based on existing payment gateway capacity, mobile prepaid capacity and business networks.

The company indicated that a programme to extend the ability to pay for digital assets to a wider business system was being evaluated. If the follow-up goes well, stable currency payments will not be just a pilot project, but may enter a large commercial payment scene in Korea.

Solana continues to work together in Korea.

Prior to KG Financial, the Solana Foundation had several cooperations with Korean financial institutions. On 22 June, Toss Bank announced a strategic partnership with the Solana Foundation to test a global remittance and settlement infrastructure based on block chains. Toss Bank owns more than 15 million users and states that it will assess the use of stable currency in international remittance, payment, monetization and digital asset services.

This series of cooperation is taking place at a time when the Republic of Korea is accelerating its digital asset legislation. On 8 April, the ruling Democratic Party of Korea, the Democratic Democratic Party of the Democratic People ' s Republic of Korea, introduced a draft law on the Basic Law on Digital Assets, which will regulate the issuance, trade, trusteeship, disclosure of information and market behaviour of digital assets. At the same time, the draft requires a reserve support and foreclosure obligation for the French currency pegged to a stable currency and provides a clearer regulatory standard for the issuer.