KB Kookmin Card Proposes Hybrid Payment System Using Stablecoins

A new patent outlines stablecoin payments through credit cards, signaling banks’ growing push to bring crypto into daily spending.

KB Kookmin Card, a major South Korean card issuer, has taken a new step toward linking digital assets with everyday payments. A recent patent filing outlines a payment method that allows stablecoins to be used directly through existing credit cards. The move reflects growing interest among large financial firms in bringing stablecoins into regular consumer spending without changing how people pay.

KB Kookmin Card Targets Hybrid Crypto Payments With New Patent Filing

A subsidiary of KB Financial Group, KB Kookmin Card, has filed a patent for a hybrid payment system. The system plans to link blockchain wallets with traditional credit card accounts.

Users would register a digital wallet address to their existing credit card. Once linked, payments could use both stablecoins and the card balance in a single transaction.

Under the proposed structure, stablecoins in the linked wallet would be used first when a payment is made. If the balance is not enough, the system would charge the remaining amount to the user’s credit card. Payments would still run through existing card networks.

Company executives said the system is designed to remove common hurdles in digital asset payments. Card rewards, fraud protection, and chargeback rights would remain in place because transactions still rely on the traditional card structure.

In a press release, a KB Card executive said the patent provides a technical foundation for safer and simpler use of digital assets. Any future rollout, the executive added, would depend on regulatory approval and market conditions.

Hybrid Payment Seeks to Simplify Stablecoin Use at Checkout

At the technical level, the patent outlines a direct link between a user’s blockchain wallet and their existing credit card account. Payment instructions follow a fixed order. The system first checks the stablecoin balance in the registered wallet.

If funds are available, that balance is used to settle the transaction. When the balance falls short, the card account covers the difference without interrupting the payment process.

Merchants can accept stablecoin-backed payments without new terminals or crypto-specific software. Consumers avoid the need to pre-sell digital assets or switch between apps at checkout.

Analysts also note that the credit card fallback reduces the risk of failed payments. Such failures have been common in earlier crypto card models that depended on real-time asset conversion.

Earlier crypto-linked cards usually required users to sell digital assets into fiat currency before a payment was completed. In many cases, this process relied on third-party service providers.

KB Kookmin Card’s model works differently. The payment process stays within the card system. This could give the company more control over settlement and a smoother user experience.

South Korea Targets Q1 Approval for Digital Asset Basic Act

South Korea is moving toward clearer rules for stablecoins and digital assets. Under policy direction from Lee Jae Myung, lawmakers are working on the Digital Asset Basic Act. The framework is expected to support the launch of a won-pegged stablecoin market.

In June, KB Kookmin Bank was among the first institutions to apply for trademarks related to stablecoins. The filings followed signs of regulatory support from authorities.

Talks between the Bank of Korea and the Financial Services Commission have focused on allowing licensed banks to issue stablecoins through a consortium. Some ruling party lawmakers have warned the model could limit competition. Discussions are still ongoing.

Lawmakers aim to finalize the Digital Asset Basic Act in the first quarter of this year. The bill would become the country’s second major framework for digital assets. It would follow earlier rules focused on investor protection.

Crypto Card Programs Expand as Stablecoins Target Everyday Payments

South Korea records one of the highest crypto participation rates worldwide. Public interest in new payment tools remains strong. Clearer rules, including the Travel Rule and the Virtual Asset User Protection Act, have increased confidence among banks and card issuers testing blockchain-based services.

Global payment companies are moving in a similar direction. Visa and Mastercard have launched crypto-linked card programs. Many of these products still depend on external partners to convert digital assets into fiat currency.

KB Kookmin Card appears to be taking a different approach. Its patent points to a more integrated model centered on stablecoins. Price stability could reduce volatility during everyday payments.

Further development could bring stablecoins into everyday use while keeping familiar card payment habits intact. For banks and card issuers, the model offers a path to stay competitive as digital assets move closer to mainstream finance

Image by CoinWire Japan from Unsplash

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