KB Kookmin Card, a subsidiary of KB Financial Group, one of South Korea’s largest financial groups, has filed a patent application for a new stablecoin-based payment technology.
According to the company’s statement today, the patent covers a hybrid payment system that connects existing credit cards with blockchain-based digital wallets.
In the proposed system, users would be able to associate a blockchain wallet address with their credit card and use the stablecoins in their wallets for card payments.
During payment, the system will first use the stablecoin balance in the digital wallet; if the balance is insufficient, the remaining amount will be automatically charged to the credit card. This will allow users to make payments with digital assets without changing their existing card infrastructure.
KB Kookmin Card emphasized that this design aims to reduce friction in digital asset payments while preserving the familiar card experience, rewards programs, and consumer protections users are accustomed to. Company officials stated that the developed technology will contribute to the more widespread use of stablecoins not only in niche platforms but also in the mainstream financial system.
The patent application comes at a time when regulatory efforts for stablecoins are accelerating in South Korea. The “Digital Asset Basic Law,” drafted under the leadership of President Lee Jae Myung, aims to create a local stablecoin market pegged to the Korean won. In June, KB Kookmin Bank became one of the first entities to file a trademark application focused on stablecoins.
According to officials, the issuance of stablecoins is planned to be structured around a consortium of licensed banks. However, some lawmakers from the ruling party believe this approach could limit innovation. The Digital Asset Basic Law is expected to be finalized in the first quarter of the year.
*This is not investment advice.
