July 20, 2024
LG's IT arm taps Tiger Global-backed QuickNode for web3 pursuit

Despite crypto’s badly tarnished reputation following FTX’s collapse, some large corporations are warmly embracing its underlying distributed ledger technology. LG CNS, the IT solutions subsidiary of the South Korean conglomerate, has formed a strategic partnership with QuickNode, a blockchain deployment platform aiming to bring Web 2.0 services into web3.

Besides announcing the partnership, LG also revealed that it has invested in QuickNode through LG Technology Ventures for an undisclosed amount. To date, QuickNode has raised around $115 million. Upon raising $60 million from 10T Holdings, Tiger Global and others, the company was valued at $800 million in January.

LG CNS‘s system integration and digital transformation businesses are wide-ranging, having built solutions in 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 custom-built for enterprises and is applied to traditional industries like finance, logistics and energy. Some of the solutions powered by Monachain include mobile identity cards, NFTs, digital currency platforms, used battery distribution history management, issuance of healthcare information documents and electron contract systems.

South Korea’s tech-savvy population positions it as an ideal testing ground for blockchain applications. The government’s plans to replace physical IDs with digital alternatives authenticated by blockchain have given industry players a boost of confidence.

It’s no surprise, then, that Monachain has secured more than 50 corporate customers, including several of the biggest Korean banks, such as NH Noghyup Bank, Woori Bank and KB Bank, as well as LG’s telco unit called LG U+. In 2022, NongHyup Bank started working with LG CNS to work on a digital wallet solution that supports the circulation of its central bank digital currency (CBDC).

QuickNode is not LG CNS’ first foray into the crypto space. For one, the LG-owned IT arm has been working with U.S.-based decentralized identity firm Evernym on decentralized identity, a way to put control over personal information back into the hands of users by using blockchain.

In addition, last year, LG CNS launched its blockchain-based encrypted mobile ID card service for staff and released token-as-a-service, which helps corporations issue NFTs on Monachain. Altogether, the two areas of services have attracted around 10 enterprise customers in the finance, telecommunications and manufacturing sectors.

Meanwhile, LG Electronics, LG CNS’s sister company, said in 2022 that it had officially added cryptocurrency and blockchain as its new areas of business.

For QuickNode, the partnership with an LG subsidiary is a prime opportunity for its expansion in Asia.

“By partnering with LG CNS, we’re setting a course for a future where blockchain technology is integrated into every digital facet, especially in the dynamic APAC market,” Alexander Nabutovsky, co-founder and co-CEO of QuickNode, said in a statement.

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