With the Digital Asset Basic Act entering its second stage, card issuers are accelerating the development of a payments ecosystem built around stablecoins pegged 1:1 to fiat currencies. A PoC program is underway to test feasibility ahead of full commercialization, but regulators and intricate stakeholder dynamics pose substantial hurdles. The push is driven by the need to protect profitability as merchant fees shrink and big-tech payment initiatives intensify.
Stablecoins are both a threat and an opportunity: widespread use could eliminate middleman fees, but successful adoption requires collaboration with existing payment rails. On/off ramps are the most significant regulatory barrier, as linking blockchain transfers to the traditional financial system requires careful, multi-party compliance. The current PoC focuses on designing lawful on/off ramps amid differing regulations among participating players. Hana Card has begun collaborating with Circle and Crypto.com since March to market to inbound foreign visitors, offering stablecoin-based marketing with 5% cashback in CRO for eligible users.
BC Card conducted a test last October to enable foreign customers to use stablecoins for domestic payments by converting coins in foreign wallets into digital prepaid cards and QR payments. The industry notes that the key is regulatory clarity and secure exchange structures more than pure technology. Shinhan Card’s hybrid payments: transactions can be settled within the coin balance, and if funds are insufficient, the card issuer can extend a spending limit; security features include a hardware wallet with an IC chip. Other major players, including Visa and Solana-backed Web3 ventures, are testing cross-border remittance, P2P payments, and integrated settlement infrastructures.
Kookmin Card has filed a patent for a hybrid model enabling customers to use a single card for both conventional credit payments and virtual-asset payments, improving compatibility with existing systems. Industry observers say the technology is near-ready, but success will depend on regulatory certainty and the safety of the exchange structures that underpin consumer trust.
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