[Provided by Lambda256]
[Provided by Lambda256]

Lambda256, the blockchain technology subsidiary of Dunamu, said Friday it has completed a joint proof of concept with the Credit Finance Association and nine card companies to test stablecoin payment infrastructure for the card industry.

The proof of concept was designed to verify whether card companies' existing member, merchant, approval, settlement and fraud detection infrastructure could be integrated into a stablecoin payment environment.

Participants tested the full card payment cycle — from stablecoin issuance and retail distribution to payment approval, cancellation, refunds and settlement. The scope also covered using policy subsidies and card points as payment methods, along with on-chain anti-money laundering and fraud detection systems.

Lambda256 used its digital asset orchestration platform Scope and its on-chain compliance platform Clair to verify system integration approaches suited to the card industry's operational structure and environment.

During the proof of concept, the company implemented an on-chain execution framework covering blockchain transaction creation and transmission, gas fee processing and transaction status tracking, as well as cancellation, refund and settlement execution and responses to technical failures. Related functions were also improved to allow integration methods to be adjusted to each card company's system environment.

Lambda256 said the exercise confirmed that it can provide services in the form of a standard platform as well as build dedicated systems tailored to each card company's workflows and policies.

The proof of concept also clarified a division of roles. Card companies will handle business operations and bear final responsibility — covering payment method provision, user interface design, payment approval, settlement policy and merchant management — while Lambda256 manages blockchain transactions and on-chain technical execution.

The structure verified that card companies can carry out approval and settlement operations while maintaining existing payment procedures and user experience, even without directly operating blockchain infrastructure.

"This proof of concept is significant in that it has substantially resolved the technical uncertainties card companies face in participating in stablecoin payment and settlement," said Jeong Eui-jeong, chief executive of Lambda256. "We will continue to enhance the capabilities of Scope and Clair to reflect the card industry's requirements, and on that basis provide ongoing technology support so that card companies can have their role recognized in the stablecoin legislation process."

Meanwhile, Lambda256 recently launched a separate proof of concept with K bank and KSNET to verify a bank's off-ramp operating framework in a digital asset-based settlement environment. The three companies plan to conduct the joint exercise over five months.


kyoung@heraldcorp.com