LG CNS, the IT solutions subsidiary of the South Korean conglomerate, has joined forces with QuickNode, a blockchain deployment platform, in a strategic partnership. This move signifies a growing interest in the underlying distributed ledger technology of cryptocurrency, despite its recent negative associations due to FTX’s collapse.
In addition to announcing the partnership, LG also disclosed that it has made an undisclosed investment in QuickNode through LG Technology Ventures. QuickNode has raised approximately $115 million thus far and achieved a valuation of $800 million in January, following a $60 million investment from 10T Holdings, Tiger Global, and others.
LG CNS‘s system integration and digital transformation businesses encompass a wide range of solutions, including cloud, SaaS, artificial intelligence, big data, smart city, security, web3, and blockchain. The company initiated its blockchain business in 2015 and unveiled its own blockchain platform Monachain three years later.
Unlike public, permissionless blockchains such as Ethereum, Monachain is specifically designed for enterprise use and is applied to traditional industries like finance, logistics, and energy. Some of the solutions enabled by Monachain include mobile identity cards, NFTs, digital currency platforms, used battery distribution history management, issuance of healthcare information documents, and electron contract systems.
The tech-savvy population of South Korea makes it an ideal testing ground for blockchain applications. The government’s plans to replace physical IDs with blockchain-authenticated digital alternatives have instilled confidence in industry players.
Monachain has already secured over 50 corporate customers, including major Korean banks such as NH Noghyup Bank, Woori Bank, and KB Bank, as well as LG’s telecommunications division, LG U+. In 2022, NongHyup Bank collaborated with LG CNS to develop a digital wallet solution supporting the circulation of its central bank digital currency (CBDC).
QuickNode is not LG CNS’ initial venture into the crypto space. The LG-owned IT arm has previously collaborated with U.S.-based decentralized identity firm Evernym on decentralized identity, which leverages blockchain to return control over personal information to users.
Additionally, LG CNS introduced its blockchain-based encrypted mobile ID card service and token-as-a-service, attracting around 10 enterprise customers in the finance, telecommunications, and manufacturing sectors.
Meanwhile, LG Electronics, the sister company of LG CNS, declared in 2022 that it had officially integrated cryptocurrency and blockchain into its business.
For QuickNode, the collaboration with an LG subsidiary presents a prime opportunity for expansion in Asia.
“By partnering with LG CNS, we’re paving the way for a future where blockchain technology is seamlessly integrated into every digital aspect, particularly in the dynamic APAC market,” commented Alexander Nabutovsky, co-founder and co-CEO of QuickNode.