South Korea's KB Financial Files Patent for Stablecoin-Linked Credit Card Payment Technology

South Korea’s KB Financial Group, the country’s largest financial conglomerate, has filed a patent application for a hybrid payment technology that allows users to make stablecoin transactions using their existing credit cards. The system, developed by its subsidiary KB National Card, links blockchain wallets with credit cards, enabling seamless and integrated digital asset payments.

Under the proposed system, a user’s blockchain wallet is registered with their credit card. Stablecoin balances in the wallet are prioritized for transactions. If the stablecoin balance is insufficient, the remaining amount is charged to the linked credit card. This approach aims to reduce friction for digital asset users while maintaining the familiar credit card infrastructure and benefits such as rewards and consumer protections.

KB Financial Group stated that the technology preserves existing card payment systems and enhances user experience. The firm anticipates the solution could help drive stablecoin adoption beyond niche markets into the broader financial ecosystem.

Why Did This Happen?

KB Financial’s move aligns with South Korea’s ongoing efforts to regulate and promote digital assets. The country’s upcoming “Digital Asset Basic Act” aims to establish a framework for won-pegged stablecoins. KB Kookmin Bank, a part of the KB Financial Group, was among the first to file stablecoin-related trademark applications last year.

The Bank of Korea and the Financial Services Commission are working to finalize a licensing system for stablecoin issuers, requiring 100% reserve asset backing and legally guaranteed redemption rights for users. These regulatory developments create a more structured environment for financial institutions to explore stablecoin integration.

What Are Analysts Watching Next?

The move comes as stablecoins gain traction in global payments. Revolut, a fintech firm, reported a 156% surge in stablecoin payment volumes in 2025, reaching $10.5 billion. This growth is attributed to faster settlement times, lower fees, and regulatory clarity in key markets.

Analysts are watching how KB Financial’s stablecoin integration could influence other traditional financial players. KB’s patent positions the firm to potentially lead in a growing market. However, adoption will depend on regulatory approval and consumer willingness to use the hybrid system.

KB Financial also faces competition. Other institutions, including Western Union and MoneyGram, are developing stablecoin-based solutions for cross-border payments. The broader adoption of stablecoins in retail and institutional settings could reshape traditional banking infrastructure.

How Might This Impact the Financial Sector?

KB’s patent is part of a broader industry shift toward blockchain-based payment systems. The firm’s technology could lower the barrier for users who are hesitant to fully transition to digital asset systems. By preserving the existing card infrastructure, the system may encourage more consumers to use stablecoins without requiring them to overhaul their current financial habits.

Financial analysts suggest that if successful, KB’s model could set a precedent for other financial institutions. This may push traditional banks to either develop similar solutions or partner with fintech firms to remain competitive. The convergence of traditional finance and blockchain-based payment systems is expected to accelerate in 2026 and beyond.