BlockBeats News, April 14th. South Korean payment service provider NHN KCP and the Avalanche development team Ava Labs have signed a Memorandum of Understanding to jointly build a Layer 1 blockchain network tailored for real-world payment scenarios. The network will be constructed based on Ava Labs' Ava Cloud service, which is designed for enterprise self-deployment and management of L1 blockchains.

According to the joint statement, the collaboration will focus on three core areas: sub-second ultra-high-speed payment authorization, on-chain transaction data encryption, and providing merchants with customizable infrastructure for a payment ecosystem. The two parties plan to first confirm the technical feasibility through a proof-of-concept project before expanding the partnership to global financial and payment institutions. Justin Kim, Head of Ava Labs Asia, revealed that the official launch date of the new L1 network will largely depend on the progress of South Korea's crypto regulatory developments.

In addition to infrastructure development, NHN and Ava Labs will also explore tokenized deposit models, a multi-stablecoin settlement architecture, and cross-border payments, among other digital business opportunities. Previously, KB Kookmin Card, one of South Korea's largest credit card companies, announced a partnership with Avalanche last month to develop a hybrid stablecoin payment model, connecting credit cards with digital wallets to allow users to simultaneously use stablecoins and credit limits on existing credit cards.