KB Kookmin Card is partnering with Avalanche and OpenAsset to build a hybrid stablecoin credit card system that spends from a blockchain wallet first, then falls back to traditional credit if needed.
Summary
- KB Kookmin Card is partnering with Avalanche and OpenAsset to build a hybrid payment system that links a stablecoin wallet to existing credit cards.
- The model supports on‑chain stablecoin top-ups, payments and settlement while preserving rewards, protections and merchant workflows from traditional card rails.
- KB Kookmin Card filed a patent for the structure in January 2026, as South Korean financial groups race to roll out regulated stablecoin products.
South Korea’s KB Kookmin Card is developing a hybrid stablecoin credit card system on Avalanche (AVAX), aiming to let customers pay with on‑chain stablecoins or traditional credit using a single card without changing how merchants get paid. The firm said it is “stepping up development of a payment structure using stablecoins in cooperation with Avalanche, a global mainnet, and OpenAsset, a digital asset infrastructure company,” according to local outlet JoongAng Economy, as cited by Bloomingbit. The public‑blockchain design covers the full cycle of recharge, payment and settlement, with KB stressing that the user experience — including card benefits and reward points — will mirror its standard credit products.
Under the patented model, customers link a blockchain stablecoin wallet to their existing KB credit card, and transactions are routed to the wallet first; if there is not enough stablecoin balance, the remaining amount automatically falls back to the card’s credit line. RootData’s summary of the filing notes that “the stablecoin balance in the linked e‑wallet will be deducted first; if the balance is insufficient, the remaining amount will be charged to the credit card,” preserving merchant settlement in fiat while lowering barriers to everyday digital asset spending. MEXC News described the approach as a “hybrid digital asset payment tech” that “allows a transaction to first use stablecoins from the wallet and then automatically use credit if needed,” highlighting how it blends Web3 balances with legacy rails.
Avalanche will serve as the public blockchain backbone for the new system, handling on‑chain issuance, wallet transfers and settlement while KB’s existing network maintains authorization, clearing and fiat payouts. Justin Kim, head of Korea at Ava Labs, wrote on LinkedIn that “we are seeing more businesses built on blockchain — and on Avalanche,” calling the KB Kookmin Card deal “a major step forward for real‑world payment use cases on public chains.” AInvest added that the initiative “signals a move from concept to deployment,” with the January patent acting as the bridge between earlier pilots and a potential nationwide rollout.
The project lands amid a broader push by South Korean financial groups to issue and integrate regulated stablecoins. In a previous crypto.news story, BDACS launched KRW1, a won‑pegged stablecoin on Avalanche fully backed 1:1 with fiat held at Woori Bank, with CEO Harry Ryoo saying KRW1 was intended as “core infrastructure for Korea’s digital asset market.” Another story detailed how KRW1 will also be integrated into Circle’s Arc blockchain, underscoring how Korean issuers are positioning compliant stablecoins for both domestic payments and global settlement. A third story on South Korea’s stablecoin bill outlined plans for the country’s first unified framework for issuance and reserves, a backdrop that makes KB Kookmin Card’s Avalanche partnership look less like a one‑off experiment and more like the next phase of mainstream payments.
