Korea Credit Finance Association, Nine Card Issuers Complete Won Stablecoin Pilot

South Korea's card industry has completed a roughly yearlong pilot aimed at preparing for the adoption of a won stablecoin framework.

The Credit Finance Association of Korea and nine domestic card issuers recently wrapped up a proof-of-concept project on won stablecoin technology conducted through a joint task force over the past year, Yonhap News reported on July 22. The final results report was delivered the same day, according to the report.

The association and the industry used the pilot to verify the technical feasibility of the entire payments process, including stablecoin issuance and distribution, transaction monitoring, settlement and risk management. They also confirmed that existing infrastructure, such as cardholder and merchant networks, could be connected to on-chain systems, partially reducing potential technical uncertainty in the future.

In the proof of concept, the industry simulated real transaction environments using tools including a point-of-sale simulator to test stablecoin payments, cancellations and refunds. It also verified a gas-fee sponsorship function that allows users to make payments without holding a separate cryptocurrency to pay network fees.

Based on the results, the industry plans to communicate with the National Assembly and regulators so the card sector can play a key role in the future stablecoin ecosystem.

The government has said it plans to enact the Digital Asset Basic Act within 2026 to support the institutionalization of won stablecoins and related measures.