TLDR
- KB Kookmin Card will build a stablecoin hybrid 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 the credit.
- KB Kookmin Card partners with OpenAsset to develop additional payments and settlement infrastructure.
- This initiative is consistent with South Korea’s plan to introduce stablecoin regulations under the Digital Assets Basic Law.
KB Kookmin Card confirmed on Tuesday that it will build a file Hybrid stablecoin payment Model with avalanche. The company said it will design the system on a public blockchain network and link credit cards to digital wallets. He stated that the model will allow customers to spend stablecoins first and then use the card balance when needed.
The Avalanche partnership is building a hybrid card model
KB Kookmin Card said it will regulate the payment framework on Avalanche Public blockchain. The company explained that the system will link existing credit cards to digital wallets. As a result, customers will be able to access stablecoin balances and traditional credit within a single interface.
The company stated that it filed a patent last January for the hybrid payment method. She said the patent covers a system that links credit cards to digital wallets. The statement said that the card will prioritize stablecoin balances before charging the remaining amount to the credit.
KB said the model will maintain the existing card user experience. She added that customers will continue to receive rewards and other card benefits. The company stated that the structure will lower entry barriers to the use of stablecoins.
An official statement stated that the service will support balance recharges, payments and settlements. KB confirmed that it is working with OpenAsset to build the infrastructure. The company described OpenAsset as a digital asset infrastructure provider.
The hybrid system will process transactions through a public blockchain network, KB said. He explained that Avalanche will provide the underlying blockchain environment. The company did not reveal the launch date.
South Korea develops Stablecoin framework as KB prepares for launch
KB’s plan is consistent with South Korea’s efforts to create a stablecoin market tied to the won. Lawmakers are working on drafting Basic law of digital assets To determine the rules of the stablecoin. President Lee Jae-myung proposed a framework to protect monetary sovereignty.
The government plans to include stablecoin guidelines within broader digital asset legislation. Officials have not announced the final approval date. However, authorities have indicated that they expect the bill to be drafted this year.
Major banks and fintech companies in South Korea are preparing stablecoin products. Payment service providers also review internal systems for regulatory compliance. These companies plan to move forward once regulatory bodies approve.
KB said its hybrid card will support stablecoin balances pegged to the Korean won. The company explained that it will integrate wallet balances with card payment methods. She added that the system will automatically split payments when balances are in short supply.
The company stated that customers will not need separate procedures to use stablecoins. She said that the card will work through existing payment terminals. KB confirmed that it will share more technical details after the development stages.
