K bank adopts blockchain transaction analysis solution to bolster digital asset AML

K bank is strengthening its blockchain transaction analysis and anti-money laundering capabilities as it prepares for the institutionalization of digital assets, including stablecoins.

The bank said Wednesday it has adopted TranSight, a blockchain transaction analysis solution developed by Bonanza Factory, a blockchain compliance specialist.

TranSight is a Know Your Transaction solution that tracks wallet addresses and transaction paths on the blockchain to assess the risk level of individual transactions. While Know Your Customer procedures verify the identity of financial customers, KYT analyzes the flow of funds during transactions to detect potential links to money laundering or financial crime.

Through the adoption of TranSight, K bank said it aims to build a framework for directly analyzing on-chain fund movements and proactively establish the risk management infrastructure needed should digital asset-related financial services expand further.

TranSight assesses transaction risk using a range of data, including high-risk wallets and addresses linked to criminal activity. It also supports transaction analysis tailored to the domestic financial environment, drawing on information gathered through research and cooperation with South Korean investigative authorities.

The partnership with Bonanza Factory is also expanding. K bank had previously worked with the firm through TranSafer, a won deposit and withdrawal solution used in virtual asset exchange operations. The latest agreement extends that collaboration to cover on-chain fund flow monitoring and high-risk transaction analysis.

K bank said it plans to strengthen on-chain transaction monitoring in line with future regulatory developments and market changes in the digital asset sector, while gradually upgrading its AML and internal risk management systems.

"We are systematically preparing for stablecoin regulation not only by enhancing on-chain transaction analysis and anti-money laundering capabilities, but also by expanding cooperation with global financial institutions and conducting technology verification," a K bank official said. "We will continue to build our technological competitiveness so we can offer safe and innovative digital asset financial services."

Meanwhile, K bank obtained ISO/IEC 42001 certification last month, the international standard for AI management systems. The certification recognized that the bank's internal control framework for identifying and managing risks across its entire service process meets international standards as AI adoption expands.