"Card issuers to begin pilot tests for won-denominated stablecoin payments…technical validation slated for next month"

South Korean card issuers are launching a joint pilot to apply won-denominated stablecoins to card payments.

According to industry sources on the 24th, the second stablecoin task force (TF) led by the Korea Credit Finance Association is expected to hold a results briefing for card issuers on the 25th and begin technical validation from next month. The TF has been in operation for about two months since last month and has drafted integrated guidelines to be applied to won stablecoin payments.

The guidelines are said to include baseline control standards such as anti-money laundering (AML), a fraud detection system (FDS), and the Travel Rule. In particular, the focus was on establishing separate management standards suited to an on-chain-based payment structure. The association plans to refine the standard proposal by incorporating feedback from each card issuer during the proof-of-concept process.

This proof-of-concept is a simulated test to check whether payments and clearing are carried out properly by converting existing won card payments into stablecoins in real time. It is a technical verification stage to confirm that transaction processing and settlement procedures function smoothly on the payment network.

Details of the business structure, including the merchant fee system, have not yet been included in the discussions. The usage model—such as whether it will be embedded in existing card applications—also remains undecided.