South Korea KB Card Builds Hybrid Stablecoin System

TLDR

• KB Kookmin Card will build a hybrid stablecoin payment model with Avalanche on a public blockchain network.
• The company filed a patent in January covering a system that links credit cards to digital wallets.
• The hybrid card will prioritize stablecoin balances before charging the remaining amount to credit.
• KB Kookmin Card is collaborating with OpenAsset to develop infrastructure for top-up payments and settlement.
• The initiative aligns with South Korea’s plan to introduce stablecoin regulations under the Digital Asset Basic Act.

---

KB Kookmin Card confirmed Tuesday that it will build a hybrid stablecoin payment model with Avalanche. The company said it will design the system on a public blockchain and link credit cards to digital wallets. It stated that the model will allow customers to spend stablecoins first and then use card credit when needed.

Avalanche Partnership Builds Hybrid Card Model

KB Kookmin Card said it will structure the payment framework on the Avalanche public blockchain. The firm explained that the system will connect existing credit cards to digital wallets. As a result, customers will access stablecoin balances and traditional credit within one interface.

The company stated that it had filed a patent in January for the hybrid payment method. It said the patent covers a system linking credit cards with digital wallets. The release said the card will prioritize stablecoin balances before charging the remaining amount to credit.

KB said the model will preserve the current card user experience. It added that customers will continue to receive rewards and other card benefits. The company stated that the structure will lower entry barriers to stablecoin usage.

An official release said the service will support top-ups, payments, and settlements. KB confirmed that it is working with OpenAsset to build the infrastructure. The firm described OpenAsset as a digital asset infrastructure provider.

KB said the hybrid system will process transactions through a public blockchain network. It explained that Avalanche will provide the underlying blockchain environment. The company did not disclose a launch date.

South Korea Advances Stablecoin Framework as KB Prepares Launch

KB’s plan aligns with South Korea’s efforts to establish a won-pegged stablecoin market. Lawmakers are drafting the Digital Asset Basic Act to define stablecoin rules. President Lee Jae-myung proposed the framework to protect monetary sovereignty.

The government plans to include stablecoin guidelines within the broader digital asset legislation. Officials have not announced the final approval date. However, authorities indicated that they expect the bill this year.

Major banks and fintech firms in South Korea are preparing stablecoin products. Payment providers are also reviewing internal systems for regulatory compliance. These firms plan to move forward once regulators approve.

KB said its hybrid card will support stablecoin balances linked to the Korean won. The company explained that it will integrate wallet balances with card payment rails. It added that the system will automatically split payments when balances fall short.

The company stated that customers will not need separate procedures for stablecoin use. It said the card will function through existing payment terminals. KB confirmed that it will share further technical details after the development milestones.

The post South Korea KB Card Builds Hybrid Stablecoin System appeared first on CoinCentral.