AhnLab Blockchain Company announced that a blockchain-based payment and settlement infrastructure proof of concept (PoC), conducted in collaboration with BNK Busan Bank and several technology partners, has been completed successfully. The initiative was designed to evaluate a digital currency infrastructure based on a Korean won-pegged stablecoin and assess its ability to support local currency payments in a real-world financial environment.
The proof of concept successfully demonstrated a blockchain-powered payment and settlement infrastructure capable of supporting the full lifecycle of a policy-based digital local currency, from issuance and circulation to payment and settlement.
The project focused on introducing a blockchain-based digital local currency while validating every stage of its operation. In addition to testing the issuance, circulation, payment, and settlement processes, participants examined a policy-driven local currency model that embeds predefined conditions directly into the digital currency. These programmable features included restrictions on where the currency could be used, expiration dates, and other policy requirements intended to improve the administration of public funds.
Multiple Firms Contributed Specialized Technologies
The initiative brought together BNK Busan Bank, AhnLab Blockchain Company, OpenAsset, Kaia, and Lambda256, with each organization assuming distinct responsibilities throughout the project.
BNK Busan Bank developed the policy-oriented local currency model based on a won-backed stablecoin and validated essential financial functions, including wallet funding, payment processing, and settlement. AhnLab Blockchain Company led the overall project design while developing the digital wallet, transaction framework, and settlement architecture.
Meanwhile, OpenAsset managed stablecoin issuance and maintained consistency between digital assets and their underlying value. Kaia supplied the blockchain mainnet environment that supported the pilot, while Lambda256 provided node infrastructure services and monitored transaction flows throughout the testing process.
Programmable Money Extends Beyond Basic Payments
The proof of concept also explored capabilities beyond conventional token transfers by evaluating the practical implementation of programmable money. The participating companies confirmed that digital currency could incorporate policy-based conditions directly into transactions, enabling automated usage restrictions, scheduled expiration of funds, and differentiated settlement mechanisms depending on where payments were made.
The project also validated the feasibility of programmable money that can automatically enforce policy conditions, creating potential applications for government funding programs, digital vouchers, central bank digital currencies, and won-backed stablecoin services.
According to the participating organizations, these capabilities could provide a technological foundation for broader digital financial services while offering greater flexibility in the management and distribution of policy-driven funds.
Performance Testing Delivers Strong Results
The consortium also conducted extensive performance evaluations using payment operation data reflecting BNK Busan Bank‘s expected transaction environment. Testing covered four operating scenarios, including normal transaction volumes, congested network conditions, peak demand periods, and complex irregular transaction patterns. In addition, the infrastructure underwent continuous testing over a 24-hour period.
The participants reported that the platform achieved a 100% transaction success rate across all test scenarios while consistently processing transactions in less than one second. They also confirmed low transaction costs, a user experience supported through fee sponsorship mechanisms, and real-time transaction monitoring capabilities.
Project participants reported that the infrastructure maintained a 100% transaction success rate with sub-one-second processing speeds across all test scenarios, while also demonstrating low transaction costs and real-time monitoring capabilities.
Im Ju-yeong, head of AhnLab Blockchain Company, said the successful completion of the project demonstrated that a digital currency-based local currency service could operate reliably in a practical financial environment. He added that the expertise contributed by each participating organization would help establish the technological foundation needed to expand beyond digital local currencies into stablecoins, digital assets, cross-border payment systems, and other components of the next-generation financial ecosystem.
