Toss Bank has signed a memorandum of understanding with the Solana Foundation to run a proof of concept focused on blockchain-based settlement and cross-border remittances. The project is not simply about moving banking functions onchain. It is designed to test whether public blockchain infrastructure can support regulated payment systems while letting financial institutions keep direct control over payment and settlement processes, satisfy KYC and AML requirements, and protect transaction data on open networks.
Three priorities define the proof of concept
According to Toss, the PoC will revolve around three main objectives. Financial institutions must retain direct operational control. Compliance obligations that already govern the banking sector must remain intact. Transaction data must also be shielded even when activity takes place on a public blockchain. That combination is the real test. For banks, speed alone is not enough if privacy and regulatory standards cannot be preserved at the same time.
Toss said it wants to examine whether blockchain technology can support regulated payment and settlement systems without weakening security or customer data protection. The wording is narrow, and that matters. The trial is aimed at a specific banking use case rather than a broad experiment with crypto rails.
Public-chain transparency remains the sticking point
One of the biggest obstacles to broader blockchain adoption in finance has been the transparency built into public networks. Transactions are typically visible, which has made banks and payment companies reluctant to place sensitive customer operations on that type of infrastructure. For regulated institutions, privacy is not a secondary feature. It is a basic requirement.
This is why the project will evaluate whether public blockchains can meet the strict privacy standards required for banking applications. The article notes that protecting transaction data is viewed as a decisive condition for bringing blockchain into regulated financial services. If that standard cannot be met, settlement and remittance use cases remain difficult to move onto public chains.
Focus falls on settlement and remittance services
The memorandum specifically targets blockchain-driven settlement and remittance services. Solana is known as a high-performance blockchain network, while Toss Bank is the digital banking arm of the Toss ecosystem, one of South Korea’s leading fintech brands. The collaboration is framed as an attempt to connect traditional banking operations with newer crypto infrastructure in a practical setting.
The source also explains that settlement refers to the finalization and reconciliation of transactions between parties, while a proof of concept is a limited trial used to test whether a technology works for a defined use case. In this case, the central question is clear: can banking regulatory obligations be balanced with the technical characteristics of a public blockchain? The results, if they emerge from the trial, could add useful evidence to the debate over how public chains fit into regulated finance.