PANews reported on April 14th that, according to The Block, South Korean payment service provider NHN KCP and Ava Labs have signed a memorandum of understanding to develop a Layer 1 network focused on payment scenarios on Avalanche. The two companies will utilize Ava Cloud services to build a mainnet oriented towards real-world payment use cases, focusing on sub-second payment authorization, on-chain transaction data encryption, and a customizable merchant payment ecosystem. They also plan to explore new business opportunities in areas such as tokenized deposits, multi-stablecoin settlement, and cross-border payments.

The CEO of NHN KCP stated that this collaboration combines the company's payment operations experience with blockchain technology to create innovative models that can be immediately applied to real-world business. The head of Ava Labs Asia stated that the launch timeline of this L1 project largely depends on the progress of South Korea's pending crypto regulatory bill.