South Korea’s largest banking conglomerate, KB Financial Group, has completed a proof-of-concept pilot for a Korean won stablecoin, marking a major step toward integrating digital currencies into everyday payments and cross-border remittances. The test, conducted on the Kaia blockchain, involved offline purchases at Holly’s coffee shops in Seoul and international transfers to Vietnam, demonstrating dramatic improvements in speed and cost.
KB Financial, parent of KB Kookmin Bank, partnered with digital asset firm OpenAsset, the Kaia blockchain network, and payment gateway KG Inicis. For in-store payments, customers simply scanned a QR code at an offline kiosk—no separate digital wallet or app download required. The blockchain handled settlement behind the scenes while maintaining a familiar user experience. “We will do our utmost to provide lifestyle-oriented digital financial services that customers can experience in their daily lives by combining blockchain technology with financial infrastructure,” a KB Financial official stated.
The remittance leg converted the won stablecoin into a dollar stablecoin using Kaia’s on-chain liquidity system, then deposited the funds into a bank account via a local partner in Vietnam. The entire process took just three minutes, compared to days through conventional SWIFT transfers, and slashed fees by 87%. This underscores stablecoins’ potential as a settlement rail that operates 24/7 without pre-funded accounts.
The pilot aligns with a broader push by South Korean lenders. Earlier this year, Shinhan Card signed a memorandum with the Solana Foundation to explore stablecoin payments. The Bank of Korea has voiced support for bank-led won stablecoins, although regulatory disputes persist over who may issue them. KB Financial stated it will be ready to roll out full commercial services once the pending Digital Asset Basic Act is enacted.
