LG CNS Sees Wallets as Key to Digital-Asset Era in South Korea

South Korean financial institutions are racing to adapt their strategies to the rapidly evolving digital-asset landscape. Lee Jeong-hwa, director at LG CNS, emphasized that wallets will be a core touchpoint for new financial services in the era of digital assets. He highlighted the importance of combining wallets with existing superapps and linking them to various on-chain financial services.

The demand for on-chain financial infrastructure is expected to surge as deposit tokens, tokenized securities, on-chain payments, and stablecoins expand. LG CNS is testing interoperability technology to connect different blockchains and financial systems, aiming to meet the growing demand once related rules are in place.

In the tokenized-securities market, diversity among financial institutions participating as validators and protection of transaction-data privacy will be crucial, according to Kim, head of Asia-Pacific at Avalanche. South Korea's tokenized-securities policy aligns with this direction, allowing a certain level of decentralization even without an open blockchain.