TLDR:NHN KCP partners with Ava Labs to develop a payments-focused Layer 1 blockchain on Avalanche infrastructure.The network targets sub-second payment authorization with onchain encryption for secure merchant transactions.Ava Cloud will enable NHN KCP to deploy and manage a customizable blockchain for real-world payment use cases.The project also explores stablecoins, tokenized deposits, and cross-border payments pending regulatory approval.South Korea’s NHN KCP signs deal with Ava Labs for crypto payment blockchain as the payment firm moves to develop a dedicated Layer 1 network on Avalanche infrastructure.The initiative focuses on building a blockchain system optimized for merchant payments, settlement efficiency, and cross-border financial activity.Ava Labs will provide deployment support through Ava Cloud, allowing NHN KCP to configure and operate its own blockchain environment.The development is tied to broader efforts to integrate blockchain into regulated payment systems in South Korea.Avalanche Infrastructure Claims and Live System DesignAvalanche Treasury Co. outlined a set of operational capabilities already running on live systems. The statement referenced real chains processing real transactions rather than conceptual frameworks. This positioning targets institutional requirements for verifiable execution.The tweet described privacy controls that prevent external access to transaction data. It also referenced protocol-level KYC embedded directly into the network. This approach places identity verification within blockchain execution layers.We keep hearing what Avalanche can't do for institutional finance.So Ava Labs built a live proof of concept for every objection. Real chains. Real transactions. Verify it yourself.Privacy that outside parties physically cannot access. KYC at the protocol level. Atomic…— Avalanche Treasury Co. (@avat_co) April 13, 2026In addition, atomic settlement across sovereign chains was highlighted. This enables synchronized finality across separate networks. It is designed to reduce settlement mismatches in multi-chain environments.Encrypted positions were also mentioned alongside non-proprietary technical design. This allows institutions to integrate systems without adopting specialized programming languages. It supports compatibility with existing financial infrastructure.NHN KCP Payment Blockchain Development on AvalancheNHN KCP is building a payments-focused Layer 1 using Ava Cloud as part of the agreement. The platform enables companies to deploy customized blockchain networks for specific use cases. The structure is intended for high-volume payment processing environments.The system targets sub-one-second authorization speeds for transactions. This design supports fast merchant settlement across digital payment channels. It aligns with performance requirements in existing payment networks.Onchain encryption is included to secure transaction data during processing. This ensures controlled access to sensitive financial information. It also supports configurable permissions for network participants.NHN KCP CEO Jun-seok Park said the collaboration merges payment infrastructure expertise with blockchain technology. The companies will validate functionality through a proof-of-concept phase.They also plan to explore tokenized deposits, stablecoin settlement models, and cross-border payments, with rollout timing dependent on regulatory developments in South Korea.The post South Korea’s NHN KCP Partners with Ava Labs to Build Crypto Payment Layer 1 on Avalanche appeared first on Blockonomi.