Lambda256 Completes Stablecoin Payments Proof of Concept With Korea Credit Finance Association, Nine Card Issuers

Lambda256, Dunamu's blockchain unit, said on July 24 that it had completed a joint proof of concept on stablecoin payments with the Korea Credit Finance Association and nine card issuers.

The project was aimed at technically verifying whether card issuers' existing infrastructure for members, merchants, approvals, settlements and fraud detection systems, or FDS, could be linked to a stablecoin payments environment.

The test covered the card industry's full payment and settlement process, from stablecoin issuance and distribution to payment approvals, cancellations and refunds, settlements, the use of policy support funds and card points, and on-chain anti-money laundering and fraud detection.

Lambda256 said it was responsible for on-chain execution in the proof of concept using its digital asset orchestration platform SCOPE and its on-chain compliance platform CLAIR. The company also upgraded the platforms to fit the card industry's operating requirements and tested ways to link them with card issuer systems.

The work established an on-chain execution framework covering the creation and transmission of blockchain transactions, gas fee processing, transaction status tracking, execution of cancellation, refund and settlement transactions, and responses to technical failures. During the project, Lambda256 also improved functions to increase integration flexibility for individual card issuers, securing a technical foundation that can be applied across different card company environments.

The company said the verification showed it can provide services through a standardized platform while also developing dedicated systems tailored to each card issuer's operating environment and policies.

Under the structure tested in the project, card issuers retain business and operational control, as well as final responsibility, over payment methods, user interface design, payment approvals, settlement policies and merchant management. Lambda256 handles on-chain technical execution. The results showed card issuers can maintain existing business rules and user experience while remaining responsible for payment approvals and settlements without directly operating blockchain technology.

Chief Executive Officer Jung Eui-jung said the proof of concept was significant because it removed much of the technical uncertainty around card issuers' participation in stablecoin payments and settlements.

He added that Lambda256 upgraded SCOPE and CLAIR during the project to reflect the card industry's requirements. Based on that work, the company will continue providing technical support as it handles on-chain execution and helps the card industry seek recognition for payment, distribution and settlement roles during the stablecoin legislative process.

Lambda256 previously became the first company in South Korea's blockchain industry to obtain SOC 2 Type II certification, validating its ability to operate blockchain infrastructure services required in financial and enterprise environments.