Korean Payment Giant NHN KCP Partners with Avalanche to Build Payment-Exclusive Layer1 Network

April 14th — South Korean payment service provider NHN KCP and Ava Labs, the development team behind the Avalanche blockchain, have inked a Memorandum of Understanding (MOU) to jointly build a Layer 1 blockchain network tailored for real-world payment scenarios. The network will be developed using Ava Labs’ Ava Cloud platform, which lets enterprises self-deploy and manage their own Layer 1 blockchains. Per the joint statement, the collaboration focuses on three core areas: sub-second ultra-high-speed payment authorization, on-chain transaction data encryption, and customizable payment infrastructure for merchants. The partners plan to first validate technical feasibility with a proof-of-concept (POC) project before expanding the partnership to global financial and payment institutions. Justin Kim, Head of Ava Labs Asia, noted the new Layer 1 network’s official launch date will largely depend on the progress of South Korea’s crypto regulatory framework. Beyond infrastructure work, NHN KCP and Ava Labs will also explore digital business opportunities like tokenized deposit models, a multi-stablecoin settlement architecture, and cross-border payments. Notably, KB Kookmin Card—one of South Korea’s largest credit card firms—announced a partnership with Avalanche last month to build a hybrid stablecoin payment model that links credit cards to digital wallets, letting users use stablecoins and their existing credit limits simultaneously.