One of South Korea’s largest payment firms, NHN KCP, is testing out stablecoin payments through a private Avalanche network. The test, which began on May 21, includes both online and offline payments and is among the largest stablecoin payment tests in the region. The company processed ₩51.5 trillion, roughly $38 billion, in transaction volume last year, according to Ava Labs data. Stablecoins are paying for lunch at NHN KCP The system was co-developed with Ava Labs and runs on a dedicated Avalanche Layer 1 built specifically for payments infrastructure. About 700 employees at NHN KCP’s headquarters currently use stablecoins for daily purchases at the company café and cafeteria. They scan QR codes and settlements complete in under two seconds. In addition, the pilot is also linked to PAYCO, which is one of the most popular payment apps in Korea. The users of PAYCO can purchase and redeem gift certificates through the use of stablecoins. NHN KCP launched a dashboard for tracking transaction and settlement activity in real time, designed so non-technical merchants can monitor blockchain-based payments without touching the underlying system. Settlements run automatically through smart contracts between merchants and the processor. A representative of NHN KCP revealed to the local press that the company will develop a full-stack payment solution that includes online and offline as well as merchant transactions within a unified structure. Japan, Singapore, Thailand, and South Korea picked the same chain A pattern is forming across Asia where large financial institutions are building payment and settlement systems on Avalanche infrastructure. In Japan, TIS, responsible for processing around 50% of the country’s total credit card transactions, rolled out its Multi-Token Platform on Avalanche for minting stablecoins and security tokens. Progmat will move its over $2 billion worth of tokenized assets in real estate and bonds from Corda to its very own Avalanche layer 1. The process is scheduled to complete by June 2026. Banking giant SMBC is exploring around-the-clock global stablecoin transfers through the network. In Singapore, StraitsX operates a dedicated Avalanche Layer 1 to settle regulated stablecoins XSGD and XUSD. Through partnerships with Grab and Alipay+, the company is integrating stablecoin payments across Southeast Asian markets with blockchain mechanics invisible to end users. In Thailand, KBank’s subsidiary Orbix Technology launched cross-border QR payments between Thailand and Singapore with instant foreign exchange settlement on Avalanche rails. In South Korea, KB Kookmin Card, one of the country’s largest credit card companies, is building a hybrid model linking credit cards to digital wallets so customers can use both stablecoins and traditional credit on their existing cards. As Cryptopolitan reported earlier this week, KB Financial tested KRW stablecoins for payments, remittances, and offline QR code transactions. Commercial launch waits on the Digital Asset Basic Act The regulatory framework that would govern stablecoin issuance and usage in South Korea is the Digital Asset Basic Act, currently being drafted by legislators. The bill would establish licensing requirements for stablecoin issuers, define who can issue and distribute them, and determine whether they fall under electronic money regulations. As Cryptopolitan reported , South Korean legislators postponed debate on the bill until after the June 3 local elections. The Financial Services Commission has indicated it will regulate stablecoins incrementally, beginning with strict issuance requirements from regulated entities. NHN KCP has also filed trademarks for KRW-pegged and USD-pegged stablecoins, including one called USDW, per MEXC News . That signals the company intends to operate across both domestic and international payment rails once the regulatory framework is in place. According to Justin Kim, the head of Ava Labs Asia, the release of the Layer 1 mainnet depends largely on the regulatory classification of the South Korean authorities for stablecoins and the issuance parties licensed by them. NHN KCP will seek to grow beyond its existing pilot efforts by involving banks, merchants, and other payment providers. There is no launch date for the commercial product at this time. If you're reading this, you’re already ahead. Stay there with our newsletter .
