Key Notes
- LG CNS launched KITL to help financial institutions build services for stablecoins, tokenized securities and real-world assets.
- Five separate partnerships cover tokenization, blockchain access, transaction monitoring and infrastructure for the Korean market.
- KITL’s wallet technology builds on Project Hangang, while customer products and partner integrations will require further implementation.
LG CNS has launched KITL, a blockchain infrastructure platform designed to help financial institutions build services for stablecoins, tokenized securities and real-world assets. The LG group’s technology services affiliate also announced five partnerships covering tokenization, compliance and connections to blockchain networks.
The company announced the platform on October 6. Its intended users include banks, securities firms, card companies and payment providers, with a common infrastructure layer supporting different types of digital assets.
The partners are Circle Internet Group, Securitize, Canton Foundation, Chainalysis and Chainlink. LG CNS has signed separate memorandums of understanding with each, outlining work on Korean financial-market applications.
Connecting Bank Systems to Blockchains
KITL stands for Keystone of Institutional Trust Landscape. It combines four functions: digital wallets, transaction processing, gas-fee sponsorship and transaction-record collection.
These functions address the operational gap between a financial institution’s internal systems and transactions conducted on public blockchains. A bank needs to manage customer assets, submit instructions, confirm what happened and keep records it can use in its own accounts.
The transaction service tracks requests through blockchain processing and returns their status. Fee sponsorship lets service providers share the cost of gas under agreed arrangements, while record collection supplies relevant transaction data for reconciliation, accounting and audits.
For an issuer, that creates a way to compare tokens in circulation with reserve balances. For a distributor or payment provider, the records support settlement and reporting. A confirmed blockchain transaction still has to appear correctly in the institution’s books.
Five Partners Cover Different Parts of the Business
Circle’s agreement concerns infrastructure and solutions suited to Korea’s technical and regulatory environment. Securitize will work with LG CNS on tokenizing financial products such as funds and bonds, with domestic compliance requirements shaping the design.
Securitize’s own announcement sets out a broader agenda. The companies intend to identify institutional use cases in Korea and the Asia-Pacific region, develop tailored technology and cooperate on market education.
They will also explore stablecoin infrastructure and digital-asset treasury services. A longer-term possibility is connecting Korean institutions with global markets through infrastructure supporting distribution, execution and settlement around the clock.
That remains a development objective. Securitize says any resulting products or services depend on applicable laws, regulatory approvals and both companies’ internal approval and compliance processes. The memorandum does not establish a live 24/7 securities marketplace.
Securitize brings experience with institutional tokenized funds, including its relationship with BlackRock. The asset manager led a funding round in Securitize in 2024, raising $47 million. Securitize also became the transfer agent for BlackRock’s first tokenized fund on a public blockchain.
The Canton Foundation agreement concerns infrastructure for Korean institutions to participate in Canton Network. Chainalysis will collaborate on transaction monitoring, while LG CNS plans to combine KITL with Chainlink services.
Those roles cover distinct institutional needs: accessing a network, identifying suspicious fund flows and obtaining external data or blockchain connectivity. The five memorandums describe collaboration plans; they do not confirm that every integration is already deployed.
Wallet Technology Draws on Project Hangang
LG CNS says KITL’s wallet technology extends work used in the Bank of Korea’s Project Hangang from private blockchains to public networks. That gives the platform a connection to an existing retail-payment experiment.
The central bank’s account describes a live first-phase trial involving seven commercial banks, about 80,000 users and roughly 12,000 merchants. Participants made payments in settings including supermarkets and convenience stores, using an experience similar to a normal payment app.
Hangang tested a unified-ledger model involving central-bank money and tokenized bank deposits. Its participation figures describe that pilot, rather than a customer base for newly issued stablecoins on KITL. The trial is useful evidence of payment operations, while commercial products built on the new platform will have their own requirements.
Preparing for Institutional Rollouts
The partnerships fit a wider push to connect blockchain infrastructure with established financial businesses. CoinScreamer previously covered Shinhan’s Canton investment through Digital Asset, showing Korean banks’ interest in the network ecosystem.
In payments, Fiserv’s bank rollout offers another example of a technology provider connecting token-based money with existing financial workflows. The practical challenge extends beyond creating a token to the systems that let institutions handle it day to day.
KITL gives LG CNS a platform for that work, with partners contributing different capabilities. The next milestones will be identifiable client deployments and approved financial products. LG CNS has not disclosed a first stablecoin issuer, issuance volume or a timetable for individual customer launches.
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