KB Kookmin Card, one of South Korea's largest credit card issuers, has announced a partnership with the Avalanche blockchain to build a hybrid stablecoin payment system. The initiative, reported on March 31, 2026, aims to design a credit card model on a public blockchain that seamlessly integrates stablecoin balances with traditional credit.
The system builds on a patent application filed by KB in January 2026 for a hybrid payment structure linking a credit card to a digital wallet. Under the proposed design, a customer's stablecoin balance in the linked wallet would be used first for transactions. If the stablecoin balance is insufficient, the remaining amount would automatically be charged to the linked credit card, creating a bridge between crypto assets and conventional payment rails.
KB is also collaborating with digital asset infrastructure firm OpenAsset to develop the comprehensive stablecoin system for top-ups, payments, and settlement. The choice of the public Avalanche blockchain, which holds a Total Value Locked (TVL) of $1.75 billion, is notable for its potential interoperability with other wallets and decentralized applications.
This development aligns with South Korea's broader regulatory push to establish a won-pegged stablecoin market. The effort is framed within the context of the upcoming Digital Asset Basic Act, a regulatory framework championed by President Lee Jae-myung to protect monetary sovereignty in digital finance. Major banks, fintech firms, and payment providers are reportedly preparing stablecoin products pending regulatory approval.
While no official timeline for a public test or commercial launch was disclosed, the partnership signifies a significant step by a mainstream financial institution—a subsidiary of KB Financial Group, one of South Korea's "Big Four" banking conglomerates—into blockchain-based payments. Earlier reports suggested the January patent effort may have involved a task force including other major card issuers like Shinhan Card and Hyundai Card, indicating a potential broader industry initiative.
