NHN KCP Enters Stablecoin Market With Avalanche Tie-Up, Plans VASP Application in Third Quarter

Uk Jin

Summary

NHN KCP said it has formally entered the cryptocurrency industry after announcing a mainnet build with Ava Labs, the developer of Avalanche (AVAX).
NHN KCP said its roadmap calls for completion of a PoC in the second quarter, an application for virtual asset service provider (VASP) registration in the third quarter, and a mainnet launch using Avalanche technology in the fourth quarter, along with full-scale transaction settlement and expansion of its B2B business.
Hong Jong-wook said the company will combine a payments-focused Layer 1 blockchain with its payment gateway expertise to set a standard for the global payments market.

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Hong Jong-wook, head of NHN KCP’s stablecoin task force, speaks at the “The Frontier: Global Business Strategy in the Stablecoin Era” summit at IFC The Forum in Seoul’s Yeouido on Aug. 15. Photo: Jin Wook, Bloomingbit

NHN KCP, a major South Korean payment gateway provider, has formally laid out its entry into the cryptocurrency industry. A day after announcing plans to build a mainnet with Ava Labs, the developer of Avalanche (AVAX), the company said it will seek registration as a virtual asset service provider, or VASP, in the third quarter.

Hong Jong-wook, head of NHN KCP’s stablecoin task force, made the announcement on Aug. 15 at the “The Frontier: Global Business Strategy in the Stablecoin Era” summit held at IFC The Forum in Seoul’s Yeouido.

NHN KCP presented a three-stage stablecoin strategy.

The first stage, set for the second quarter, aims to complete a proof of concept, or PoC. That phase includes deploying the mainnet for an administrator dashboard, completing end-to-end integration tests and obtaining Information Security Management System, or ISMS, certification.

In the second stage, scheduled for the third quarter, the company plans to apply for VASP registration under South Korea’s Act on Reporting and Use of Certain Financial Transaction Information.

The third stage, set for the fourth quarter, calls for launching a mainnet using Avalanche’s solution and expanding into full-scale transaction settlement and business-to-business operations.

By combining a payments-focused Layer 1 built through its partnership with Avalanche and more than 20 years of payment gateway expertise, NHN KCP aims to set a standard for the global payments market, Hong said.

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