K-STAR, a KRW stablecoin-based digital currency infrastructure technology alliance, announced on the 6th that it successfully completed a blockchain-based payment and settlement infrastructure proof of concept (PoC) with BNK Busan Bank for local currency digital transformation. The project aimed to verify the operational feasibility of blockchain-based digital local currency in actual financial environments, implementing the entire process from issuance to distribution, payment, and settlement of policy-embedded local currency with built-in conditions such as usage locations and expiration dates. K-STAR is a technology alliance for KRW stablecoin-based digital currency infrastructure that includes AhnLab Blockchain Company, a blockchain subsidiary of security firm AhnLab.
Project Participants and Role Distribution
The project involved BNK Busan Bank, AhnLab Blockchain Company, OpenAsset, Kaia, and Lambda256. Each participating organization divided responsibilities across specialized domains to verify mutual interoperability. BNK Busan Bank designed the policy-type local currency model based on KRW stablecoin reflecting current local currency operational structures, and performed verification of key functions including charging, payment, and settlement. AhnLab Blockchain Company handled project design and implementation of user wallet, transaction, and settlement structures. OpenAsset managed stablecoin issuance and asset integrity management. Kaia provided the mainnet environment, while Lambda256 supported node infrastructure operation and transaction flow monitoring.
Technical Implementation by Each Organization
The participating institutions confirmed the feasibility of a digital local currency operating system where issuance, infrastructure, settlement, and security are organically connected. BNK Busan Bank reflected the current local currency operational structure in designing the policy-type local currency model and verified major functions. AhnLab Blockchain Company implemented the user wallet, transaction, and settlement architecture. OpenAsset handled stablecoin issuance and maintained asset integrity. Kaia provided the mainnet environment for testing, and Lambda256 operated node infrastructure and monitored transaction flows throughout the verification process.
Core Achievement: Programmable Money Implementation
K-STAR explained that the core achievement of this PoC was implementing programmable money beyond simple token transfers. The system embedded policy conditions into the currency, including restrictions on specific merchant usage, automatic expiration date elimination, and differential settlement by usage location, processing these stably on the mainnet. This demonstrated expansion possibilities for policy funds, digital vouchers, central bank digital currency (CBDC), and KRW stablecoin-based services.
Kaia Mainnet Performance Validation Results
The Kaia mainnet performance verification was conducted based on load scenarios reflecting BNK Busan Bank's payment operation data. Testing included four scenarios—normal, congested, maximum, and complex irregular—along with 24-hour continuous testing. Results showed 100% transaction success rate and processing performance within 1 second across all intervals. The verification also successfully confirmed low transaction costs, user experience (UX) based on fee delegation, and real-time monitoring response capabilities.
Industry Significance and Future Applications
Im Ju-young, head of AhnLab Blockchain Company, stated that this project is significant in verifying that digital currency-based local currency services can operate stably in actual environments. Im added that each participating company will establish a foundation to expand into next-generation financial ecosystems including stablecoin, digital assets, and cross-border payment and settlement, as well as local currency digital transformation, based on specialized capabilities.
FAQ
What did K-STAR achieve with BNK Busan Bank on the 6th?
K-STAR successfully completed a blockchain-based payment and settlement infrastructure proof of concept with BNK Busan Bank for local currency digital transformation, implementing the entire process from issuance to distribution, payment, and settlement of policy-embedded local currency.
What performance results did the Kaia mainnet verification achieve?
The Kaia mainnet performance verification recorded 100% transaction success rate and processing performance within 1 second across all test scenarios, including normal, congested, maximum, and complex irregular conditions, along with 24-hour continuous testing.
What is programmable money in this blockchain local currency system?
Programmable money refers to currency with embedded policy conditions such as restrictions on specific merchant usage, automatic expiration date elimination, and differential settlement by usage location, which the system processes stably on the mainnet.
