BonanzaFactory to Provide Kbank With Digital-Asset KYT Solution TranSight

BonanzaFactory, a blockchain compliance company, said on October 21 that it signed an agreement with Kbank for the use of its Know Your Transaction, or KYT, solution TranSight.

TranSight is a KYT solution that analyzes the risk levels of blockchain wallets and transaction flows. BonanzaFactory said it has built and provides its own databases covering high-risk addresses, identified digital-asset service provider addresses, virtual asset service providers not reported to the Financial Intelligence Unit, and addresses in South Korea linked to crime.

The agreement is intended to prepare for the institutionalization of digital assets such as stablecoins and the expansion of related financial-sector businesses. BonanzaFactory said it aims to provide Kbank with its on-chain transaction analysis and anti-money laundering, or AML, capabilities.

The two companies have also been working together on infrastructure operations related to digital-asset exchanges. Through the new agreement, that cooperation is set to expand from existing won deposit and withdrawal services to blockchain-based on-chain compliance.

Specifically, Kbank plans to gradually build the capacity to directly verify and analyze on-chain fund flows as it prepares for changes in the business environment and regulations surrounding digital-asset businesses, including stablecoins.

Because the flow of funds tied to stablecoins — from issuance to circulation and redemption — takes place on the blockchain, financial institutions pursuing such businesses need the ability to directly monitor on-chain transactions and analyze risks. BonanzaFactory said Kbank will use TranSight as a basis for proactively reviewing the on-chain transaction monitoring and AML systems financial institutions may require in the future.

Kim Young-seok, BonanzaFactory's chief executive officer, said the TranSight agreement with Kbank is significant because it lays the groundwork for expanding a partnership built around won deposit and withdrawal services into the on-chain sector. BonanzaFactory will continue to provide technical support and cooperate with financial institutions so they can develop their own on-chain analysis and AML capabilities as digital-asset businesses expand into the financial sector, he added.