LG CNS has launched KITL, a blockchain infrastructure platform designed to help financial institutions develop and operate digital asset services, including stablecoins, tokenized securities and real-world-linked assets.
The South Korean technology company said KITL is intended to provide the underlying infrastructure rather than directly issue digital assets or hold customer funds. The platform is aimed at banks, securities firms, credit card companies and payment companies seeking to connect blockchain-based services with their existing financial systems.
The launch was announced on Oct. 6 as financial institutions continue to explore ways to incorporate blockchain networks into established financial operations.
Four Core Functions for Digital Asset Operations
KITL combines four main capabilities: electronic wallets, transaction processing, commission payments and transaction-detail collection.
LG CNS said financial institutions require dedicated infrastructure because digital assets can be transferred and traded on public blockchains outside an institution’s existing systems. KITL is designed to help institutions store digital assets, track blockchain transactions, and reflect those activities within their conventional financial workflows.
Its electronic wallet functions as an account for holding digital assets and authorizing transactions. According to LG CNS, private keys are generated inside hardware security equipment when a transaction requires a signature. The keys are then used and discarded rather than being stored continuously.
KITL is designed as a common infrastructure layer that allows financial institutions to connect digital asset transactions with existing financial systems instead of building separate infrastructure for every new blockchain-based service.
LG CNS has also completed patent registration for technology that it says can support wallet issuance for tens of millions of customers without requiring a continuous increase in equipment capacity.
The technology was tested during the Bank of Korea’s digital currency demonstration project, known as Project Han River. Seven banks participated in the project’s first real-transaction demonstration, during which about 81,000 electronic wallets were opened. Deposits worth approximately 1.64 billion won were converted into deposit tokens.
LG CNS said operational requirements identified during the demonstration were incorporated into KITL.
One Platform Across Multiple Assets and Blockchains
The company describes KITL as a shared infrastructure platform capable of supporting different digital assets and blockchain networks. Financial institutions could use the system as they expand from deposit tokens to stablecoins and tokenized securities or move projects between blockchain networks.
The platform is also designed to integrate with existing financial infrastructure. LG CNS said this could allow institutions to build digital asset services covering issuance, distribution, settlement, and auditing without developing a new technical foundation for every project.
The approach reflects a growing focus on institutional blockchain infrastructure, where the challenge extends beyond creating or transferring tokens to connecting those assets with established financial processes and compliance requirements.
LG CNS Digital Business Division Head Kim Hong-geun said the company aims to combine infrastructure with global partnerships so financial institutions can launch digital asset services once their internal systems are ready.
Stablecoins Target Business Payments
LG CNS sees business-to-business transactions as a potential early application for stablecoins. The company identified corporate payments and settlements, transfers between affiliated companies, immediate merchant settlement, conditional payments and automated refunds as possible use cases.
The company also plans to explore programmable payments and transactions initiated by artificial intelligence agents operating within predefined authorization limits.
These applications remain potential use cases rather than services that LG CNS has confirmed as already operating through KITL. The company’s immediate focus is to provide infrastructure and collaborate with blockchain technology providers as financial institutions develop their digital asset strategies.
The platform could allow banks and other financial companies to reuse a common technical foundation across stablecoins, tokenized securities and other blockchain-based assets, potentially reducing the cost and complexity of launching new digital asset services.
Partnerships Expand Institutional Capabilities
LG CNS has signed business agreements with five organizations: stablecoin issuer Circle, tokenization platform Securitize, Canton Foundation, blockchain analytics company Chainalysis and blockchain oracle provider Chainlink.
The company plans to combine technologies from those partners with KITL to support tokenization, institutional blockchain connectivity, abnormal transaction monitoring, and regulatory requirements.
The partnerships are intended to broaden the platform’s capabilities as financial institutions evaluate blockchain applications beyond individual pilot projects.
LG CNS emphasized that it will not directly issue virtual assets or custody customer assets through KITL. Instead, its role is to provide the technology platform and develop additional systems tailored to financial institutions pursuing digital asset services.
By separating infrastructure provision from asset issuance and custody, LG CNS is positioning KITL as an institutional technology layer that financial companies can use to build regulated digital asset services within their existing operational environments.
The company’s strategy comes as banks and other financial institutions increasingly examine stablecoins, tokenized assets, and blockchain-based settlement as potential components of future financial infrastructure.
