LG CNS announced on the 6th that it has launched a blockchain infrastructure platform to support financial institutional investors in building digital asset services.
LG CNS announced the launch of its blockchain infrastructure platform, "Giteul." Giteul is a platform that provides the necessary infrastructure for banks, securities firms, card companies, and payment processors to build digital asset services such as stablecoins, tokenized securities, and real-world asset-linked assets.
Giteul offers four functions essential to the digital asset business: digital wallets, transaction processing, fee settlement, and transaction record collection. Financial institutional investors have traditionally recorded and directly managed customer transaction records on their own systems. In contrast, digital asset transactions take place on public blockchains that anyone can participate in. This creates a structure where customer assets move within an area that is difficult for financial institutional investors to control.
For this reason, financial institutional investors need separate infrastructure to store assets, process transactions, and secure transaction records if they are to conduct digital asset businesses. LG CNS explained that Giteul supports this area.
The digital wallet functions similarly to a bank account. It is the space where customers store their digital assets and perform electronic signatures when sending assets. Private keys, which serve as account passwords, are typically stored in Hardware Security Modules (HSMs), but there are limits to the storage capacity of such equipment.
LG CNS applied a method that does not store private keys, instead generating them only at the moment a signature is required, using them, and then discarding them. The company explained that this approach allows it to issue wallets to tens of millions of customers without increasing hardware. LG CNS has also completed patent registration for this method.
The digital wallet technology in Giteul is based on the technology applied in the Bank of Korea's digital currency pilot project, "Project Han River." At the time, verification was completed in an environment where seven banks and approximately 80,000 customers performed actual payments at convenience stores, marts, and other locations. LG CNS has expanded this to public blockchains, not just private ones.
The transaction processing function tracks the status of transactions requested by financial institutional investor systems until they are successfully processed on the blockchain and delivers the results. The fee settlement function processes gas fees, which are blockchain usage fees, so that service providers such as banks and card companies share the burden according to agreed-upon structures.
The transaction record collection function retrieves only records related to the specific financial institutional investor from among transaction records on public blockchains worldwide. For example, stablecoin issuers can use this to cross-check total issuance volume with dollar and won deposits. Stablecoin distributors can utilize it for settlement, accounting, and audit materials.
The strength of Giteul lies in its scalability. As discussions on the enactment of a basic digital asset law gain momentum, the financial sector is also accelerating preparations for blockchain-based digital asset businesses. However, deposit tokens, tokenized securities, and stablecoins each require separate responses. If financial institutional investors build new infrastructure every time they expand their business areas, duplicate investments may occur.
Giteul is designed so that its four essential functions can be used jointly across multiple assets and multiple blockchain networks. Financial institutional investors can utilize existing infrastructure even when expanding their businesses to various digital assets or adding other blockchain networks such as Solana in addition to Ethereum.
LG CNS has also built a global partner ecosystem centered on Giteul. The company signed memoranda of understanding with five global blockchain companies for each area required for the digital asset business.
The partners include Circle, the issuer of the stablecoin USDC; Securitize, a tokenized securities issuance and management platform company; Canton Foundation, a global financial transaction blockchain foundation; Chainalysis, a blockchain intelligence platform company; and Chainlink, which provides external data to blockchains and connects different blockchains.
LG CNS will collaborate with Circle on developing digital asset infrastructure and solutions tailored to the domestic technology and regulatory environment. With Securitize, it will jointly develop solutions for tokenizing financial institutional investors' funds, bonds, and other assets in compliance with domestic regulations.
With Canton Foundation, LG CNS will build infrastructure that allows domestic financial institutional investors to participate in the Canton Network. With Chainalysis, it will integrate transaction monitoring functions compliant with domestic regulatory requirements into the Giteul platform. Through this collaboration, financial institutional investors will be able to detect and block the inflow of crime-related funds into wallets. LG CNS is also promoting the integration of the Giteul platform with Chainlink services.
Kim Hong-geun, Senior Vice President and Head of the Digital Business Division at LG CNS, said, "By providing essential infrastructure for digital asset businesses and global partnerships together through Giteul, we will support financial institutional investors in starting their services simultaneously with the implementation of regulations."
in TECH
