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- NHN KCP has signed an agreement with Ava Labs to build a payments-focused Layer 1 network on Avalanche.
- The project will target real-world payment use cases with sub-one-second processing, onchain encryption and customizable merchant infrastructure.
South Korean payments provider NHN KCP is moving deeper into blockchain infrastructure, this time with a plan to build its own payments-focused Layer 1 network on Avalanche.
The company has signed a memorandum of understanding with Ava Labs, the developer behind Avalanche, to create a mainnet built specifically for real-world payment use cases. The network will be launched using Ava Cloud, Ava Labs’ platform for companies that want to deploy and manage their own Layer 1 blockchains.
Payments, not speculation, sit at the center
That matters because this is not being framed as a general-purpose crypto expansion. NHN KCP and Ava Labs are positioning the project around payment rails, speed and merchant operations, which gives it a more practical tone than many blockchain announcements usually carry.
According to the report, the partnership will focus on three main pillars. The first is sub-one-second payment processing, aimed at enabling faster authorization for real-world transactions.
The second is onchain encryption of transaction data, which suggests the companies want to push security and privacy further into the payment stack itself. The third is a customizable merchant infrastructure, designed to support a broader payment ecosystem rather than just a narrow internal network.
Avalanche keeps pushing its custom chain model
For Avalanche, the deal is another example of the strategy Ava Labs has been leaning into for some time. Rather than insisting every business build on one shared network, it is offering companies the tools to run purpose-built chains tailored to specific industries and workflows.
NHN KCP’s involvement gives that model a stronger real-economy angle. The company comes from the payments side, not from a crypto-native experiment, and that shifts the emphasis from token trading to transaction execution.
NHN KCP chief executive Jun-seok Park said the agreement is significant because it combines the firm’s payments expertise with blockchain infrastructure in a way that could be applied directly to business operations. That may be the key point here. Plenty of blockchain pilots promise future relevance. This one is being sold as something meant to plug into payment activity much sooner than that.
