*[ASA News] is a bi-weekly newsletter where we share the most important news related to stablecoin in Asia. (2026.03.30~04.12)
Written by Moyed
Source: South Korea's KB Card taps Avalanche for 'hybrid' stablecoin credit card
KB Kookmin Card, one of South Korea's largest card companies, has announced it will build a hybrid stablecoin payment model with Avalanche. The announcement follows KB Card's January patent filing for a hybrid payment system that links existing credit cards to digital wallets, enabling customers to use both stablecoins and credit on their cards. The card payment model will be designed on Avalanche's public blockchain, with digital asset infrastructure firm OpenAsset collaborating to develop a comprehensive stablecoin system covering top-ups, payments, and settlement.
The hybrid payment mechanism prioritises the stablecoin balance in the digital wallet linked to the credit card. When the stablecoin balance is insufficient, the remaining amount is automatically charged to the credit card. KB Card stated that the goal is to lower the barrier to entry for stablecoins and digital assets while preserving the familiar credit card user experience, including existing rewards and benefits. This aligns with South Korea's ongoing efforts to establish a regulatory framework for a KRW stablecoin market through the Digital Asset Basic Act, expected to take shape this year. Major banks, fintechs, and payment providers are already preparing stablecoin product launches in anticipation of regulatory approval.
1.2.1 Moyed (ASA Contributor, Delta Network) – The Evolution of Stablecoin Cards: From 'Crypto Off-Ramp' to 'Credit Payment Integration'
The dominant stablecoin card model to date has been the prepaid debit card. The common thread across Crypto.com Visa, Coinbase Card, and similar offerings is a structure where users' crypto assets or stablecoin balances are converted to fiat at the point of payment. The Bridge-Visa partnership follows the same logic: Bridge deducts from the user's stablecoin balance and settles with merchants in fiat through the Visa network. Nium's recently launched stablecoin card issuance platform likewise connects to Visa and Mastercard networks via a single API but ultimately converts stablecoins to fiat at the point of merchant settlement.
KB Card's hybrid model introduces a differentiating approach. While existing models move from the crypto ecosystem outward to traditional payment networks, a "crypto-to-fiat" direction, KB Card starts from existing credit card infrastructure and absorbs stablecoins as a payment option: a "credit card-to-stablecoin integration" direction. Users do not receive a new card. They link a digital wallet to their existing KB credit card, and if a stablecoin balance is available, it is deducted first; if insufficient, the transaction automatically switches to credit. The existing rewards structure is preserved. In this framework, stablecoins are naturally incorporated as "just another balance" for the user. Whether KB Card's approach will reach commercialisation, and in what form, after KRW stablecoin regulations are finalised remains uncertain, but the design direction itself signals the next phase of the stablecoin card market.
DeCurret DCP, GMO Aozora Net Bank, and ABeam Consulting are launching a pilot to improve interbank settlements using tokenised deposits. The project has been selected for the Financial Services Agency's (FSA) "FinTech Proof-of-Concept Hub," making it the third initiative under the Hub's "Advanced Payment Project (PIP)." The core challenge is completing interbank settlements onchain when tokenised deposits are transferred between multiple banks.
The pilot will test two settlement methods. The first is the "lead bank method," in which a designated private bank simultaneously processes user-to-user tokenised deposit transfers and interbank settlements. The second is the "collaboration method," which uses stablecoins to process interbank settlements associated with user-to-user transfers. The experiment aims to verify the feasibility and legality of 24/7 real-time gross settlement for tokenised deposit transfers, targeting reduced settlement risk, compressed liquidity requirements, and lower operational burden. DeCurret DCP serves as the representative applicant, GMO Aozora Net Bank as the lead bank, and ABeam Consulting as the secretariat, with additional financial institutions including Hokuriku Bank expected to participate.
2.2.1 Moyed (ASA Contributor, Delta Network) – DCJPY's Next Challenge: From 'Single Platform' to 'Interbank Settlement Layer'
DeCurret DCP's pilot signals that the DCJPY project has entered a new phase. DCJPY, Japan's flagship tokenised deposit network, has so far focused on building a structure where multiple banks issue and circulate tokenised deposits on a single platform. But for tokenised deposits to scale, the interbank settlement problem, settling obligations when tokenised deposits are transferred between different banks, must be resolved. In the existing banking system, settlement through central bank reserve accounts (e.g., BOJ-NET) handles this role, but it operates only during business hours and processes in batches. If tokenised deposits move 24/7 in real time while settlement remains tethered to legacy systems, a bottleneck emerges.
The two methods under testing carry distinct trade-offs. The lead bank method concentrates liquidity in a single institution acting as the central settlement agent, offering efficiency but increasing dependency and counterparty risk on that institution. The collaboration method uses stablecoins as a settlement medium to maintain decentralisation, but introduces new variables around the issuer and credit structure of the settlement stablecoin. Both methods effectively bypass the existing central bank settlement infrastructure, making the relationship with the Bank of Japan a key issue going forward.
If Korea's Project Hangang represents a "top-down" approach, with the Bank of Korea designing wCBDC and deposit tokens on unified infrastructure, Japan's DCJPY takes a "bottom-up" path, building the tokenised deposit network first and solving interbank settlement retroactively. Both approaches ultimately aim for the same destination: infrastructure where tokenised deposits issued by multiple banks interoperate at par. But the difference in paths may produce structural divergences over time.
Source: IBK Bank, GS Retail, and Bank of Korea to Establish Digital Currency Payment System
IBK Industrial Bank of Korea has signed a memorandum of understanding (MOU) with GS Retail and the Bank of Korea for the utilisation of digital currency and deposit tokens. The agreement is part of the second phase of the Bank of Korea's Project Hangang, aiming to verify digital currency payment infrastructure in real-world distribution channels. The three institutions will collaborate on establishing a payment and settlement system based on digital currency and deposit tokens, creating a payment environment within GS25 stores, and jointly researching and developing commercially viable business models. Actual payments are expected to begin at GS25 stores nationwide in the second half of the year.
The pilot is significant in that it moves beyond finance-sector-centred experiments to verify the effectiveness of a deposit token-based payment system in actual retail settings. Deposit tokens, bank deposits issued in token form for use in payments, are being examined as an alternative that can deliver both efficiency and stability compared to existing payment and settlement systems. An IBK representative stated, "This agreement will serve as an opportunity for digital currency to present a new standard for financial infrastructure by combining with distribution channels," adding that "we will continue to expand innovative services based on deposit tokens."
3.2.1 Moyed (ASA Contributor, Delta Network) – Project Hangang Shifts from 'Technical Proof' to 'Retail Payment Reality'
The selection of GS25 as a pilot channel in Project Hangang Phase 2 means deposit tokens are leaving the laboratory and entering a payment environment that consumers interact with daily. Phase 1's live-transaction pilot last year saw 81,000 participants (by digital wallet) process 114,880 transactions, but participating merchants were primarily small-scale and the scope was limited. GS25 operates approximately 17,000 stores nationwide and handles millions of small-value transactions daily. Verifying whether deposit token payments work at this scale is an effort to close the gap between technical feasibility and commercial viability.
Project Hangang's design philosophy aligns with the BIS's "unified ledger" vision. Wholesale CBDC (wCBDC) serves as the anchor, with commercial bank deposit tokens issued and circulated on top, and tokenised asset (bond, equity) settlement occurring on the same infrastructure. The Phase 2 additions of P2P transfers, biometric authentication, and automatic deposit-to-deposit token conversion represent efforts to raise the user experience to mobile banking standards. Pilots applying blockchain to government treasury fund execution and EV charging infrastructure are designed to demonstrate that the value of programmable money extends beyond simple payments to conditional execution. Notably, the recently nominated BOK governor candidate Shin Hyun-song, the BIS Monetary and Economic Department director who led the design of this very unified ledger model, is likely to further strengthen Project Hangang's momentum.
Compared to Japan's DCJPY, which took a bottom-up path by building the tokenised deposit network first and addressing interbank settlement retroactively, Korea's model has the central bank designing the infrastructure and sequentially integrating commercial banks and distribution channels. The GS25 pilot represents the "retail payment verification" stage of this model.
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4.1.1 OpenFX Raises $94M for Stablecoin-Based Cross-Border Payments
Annualised payment volume surged from $4B to $45B, serving neobanks and payroll platforms
Targeting large corporate transfers in the $1M-$10M range, bridging traditional banking with digital assets for faster, cheaper FX
Expanding from US, UK, UAE, and India into Southeast Asia and Latin America
4.1.2 SWIFT Begins Development of Blockchain-Based Interbank Ledger
MVP launching later this year on Ethereum-compatible Hyperledger Besu architecture, enabling 24/7 cross-border payments
Banks retain control of keys, assets, and settlement; SWIFT provides orchestration and validation services
Targeting programmable corporate payments, FX PvP, and securities transactions
4.1.3 Nium Launches Stablecoin Card Platform for Visa and Mastercard Integration
Single API integration enables companies to issue stablecoin-backed payment cards accepted at millions of merchants worldwide
Direct stablecoin settlement where supported, eliminating need for multiple provider relationships
88% of companies convert received stablecoins to USD immediately, positioning stablecoins as payment infrastructure rather than store of value
4.1.4 Mitsubishi Adopts JPMorgan's Kinexys Blockchain Network for Global Payments
Kinexys processes $7B in daily transactions, with over $3T cumulative since 2020
Near-instant fund transfers and 24/7 operations reduce traditional banking dependencies
Kinexys expanding beyond payments into tokenisation platform for private credit and real estate assets
4.2.1 HKMA Delays First Stablecoin License Approvals
Regulators prioritising stricter risk controls over meeting March deadline for first batch of licences
HSBC and Standard Chartered's joint venture Anchorpoint emerge as leading candidates for initial approvals
Futu Securities and OSL Group positioned as strong contenders for subsequent licensing rounds
4.2.2 Ant Group Acquires Majority Stake in Hong Kong Stablecoin Company
Purchasing 50.55% of Bright Smart Securities for HK$2.814B ($360M)
One of the largest Chinese investments in the stablecoin sector to date
Signals growing institutional interest in digital asset infrastructure from major Asian fintech players
4.2.3 Singapore's Startale Group Raises $63M in Series A Led by SBI Group
SBI Group contributed $50M, following Sony Innovation Fund's earlier $13M investment
Operates Astar Network (Japan's largest public blockchain); developing Strium, a Layer 1 platform for 24/7 tokenised securities trading
Funds will boost adoption of JPYSC and USDSC stablecoins and scale institutional-grade settlement infrastructure
4.3.1 US Senate Nears Final Stablecoin Yield Rules Under Clarity Act
Final text to outline how crypto firms can offer stablecoin rewards without disrupting traditional banking deposits
Balancing DeFi innovation with financial stability in the $319B stablecoin market
Incorporating international frameworks from EU (MiCA), Singapore, and UK for global compatibility
4.3.2 Better Money Company Raises $10M to Build Stablecoin Clearinghouse Infrastructure
Building first-of-its-kind clearing layer enabling seamless conversion between different stablecoins without slippage or OTC desks
Partnering directly with banks and stablecoin issuers for collateral-based face-value exchange
Co-founded by former a16z crypto investment team member Sam Broner and ex-Eigen Labs General Counsel Adam Zuckerman
4.3.3 SQRIL Launches First Stablecoin-to-Fiat QR Payments in Thailand and Cambodia
Enabling USDT payments at merchants via national QR standards PromptPay (Thailand) and KHQR (Cambodia)
Users pay with stablecoins while merchants receive instant settlement in local currency (THB/KHR)
Operational in 10 countries across Asia and Latin America, with Africa expansion planned; backed by Tether's Plan B VC Fund
Dive into 'Narratives' that will be important in the next year
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