KB Kookmin Card Partners with Avalanche for Hybrid Stablecoin Credit Card

KB Kookmin Card is collaborating with Avalanche and OpenAsset to create a hybrid stablecoin credit card system. This innovative solution allows customers to make payments using on-chain stablecoins or traditional credit without changing the merchant payment process.

Key Takeaways

New Payment System: KB Kookmin Card is developing a hybrid credit card system on Avalanche, enabling payments with stablecoins and traditional credit.
User-Friendly Design: The card maintains familiar benefits and rewards for users, similar to standard credit products.
Blockchain Integration: The public blockchain supports on-chain transactions, while existing banking infrastructure handles fiat payouts.
Market Shift: This initiative reflects a growing trend among South Korean financial entities to utilize regulated stablecoins.

KB Kookmin Card avalanche stablecoin credit payment

Main Content

KB Kookmin Card is joining forces with Avalanche and OpenAsset to create a groundbreaking hybrid stablecoin credit card system. This initiative aims to allow customers to pay using either on-chain stablecoins or traditional credit with just one card, all while keeping the payment process unchanged for merchants. According to a report from local source JoongAng Economy, as mentioned by Bloomingbit, KB is “accelerating the development of a payment framework utilizing stablecoins in partnership with Avalanche, a global mainnet, and OpenAsset, a digital asset infrastructure provider.”

The architecture of this public blockchain solution encompasses the entire process of recharge, payment, and settlement. KB emphasizes that the user experience will be consistent with its regular credit card offerings, including the same benefits and reward points.

In this innovative model, customers can connect a blockchain stablecoin wallet to their existing KB credit card. Transactions will first reference the balance in the stablecoin wallet. If the stablecoin balance is insufficient, the card will automatically draw from the credit line to cover the remaining amount. RootData, summarizing the patent details, points out that “the stablecoin balance in the linked e-wallet will be deducted first; if insufficient, the credit card will be charged.” This system preserves payments for merchants in fiat while simplifying daily spending for users with digital assets. MEXC News describes this as a “hybrid digital asset payment technology,” which adeptly integrates Web3 balances with traditional payment systems.

Avalanche will function as the public blockchain backbone for this new payment system, managing aspects like on-chain issuance, wallet transactions, and settlement. Meanwhile, KB's established network will continue to handle authorizations, clearing, and fiat payouts. Justin Kim, head of Korea at Ava Labs, expressed on LinkedIn that “we are witnessing a surge in businesses being built on blockchain — and specifically on Avalanche.” He views the KB Kookmin Card collaboration as “a significant advancement for real-world payment use cases on public chains.” AInvest added that this initiative marks a transition from concept to actual operation, with the January patent serving as a conduit between earlier trials and a possible nationwide launch.

This project emerges amid a broader movement within South Korean financial institutions to develop and implement regulated stablecoins. Earlier reports highlighted that BDACS launched KRW1, a won-pegged stablecoin on Avalanche, fully backed 1:1 by fiat stored at Woori Bank. CEO Harry Ryoo stated that KRW1 is designed to be “core infrastructure for Korea’s digital asset market.” Further details showed how KRW1 would be integrated into Circle’s Arc blockchain, emphasizing how Korean issuers are positioning compliant stablecoins for both domestic transactions and international settlements. Additionally, a recent discussion on South Korea’s stablecoin legislation highlighted plans for the first cohesive framework for issuance and reserves, which contextualizes KB Kookmin Card’s partnership with Avalanche as a significant evolution in mainstream payment methods.