KB Financial Group (KB) completed trials of a payment, settlement, and cross-border transfer system powered by a stablecoin pegged to the South Korean won. During the tests, transfers to overseas banks took less than three minutes, while fees were approximately 87% lower compared to the traditional SWIFT system.
As part of a proof-of-concept (PoC) project, South Korean financial group KB successfully tested the full lifecycle of operations involving a South Korean won-pegged stablecoin, from token issuance to offline payments, merchant settlements, and international transfers. The news was reported by local news agency Yonhap.
The project involved payment company KG Inicis, blockchain platform Kaia, and digital asset solutions developer OpenAsset.
The trials became one of the first examples in South Korea of integrating stablecoins into everyday financial services. KB noted that users didn’t need to change their usual payment methods, as the internal settlement infrastructure was moved to blockchain technology while the customer-facing interface remained unchanged.
The payment model was tested at Hollys coffee shops. Customers paid for orders via QR code at offline kiosks without installing a crypto wallet. After payment, a smart contract automatically initiated the settlement process between transaction participants.
Special attention in the project was given to cross-border transfers. During the trials, the Korean won-pegged stablecoin was converted into a dollar-backed stablecoin through Kaia’s on-chain liquidity network, after which the funds were sent via a partner in Vietnam directly to the recipient’s bank account. The entire process took less than three minutes, whereas transfers processed through SWIFT can take anywhere from several hours to several days. According to KB, the new model reduced transfer costs by around 87% compared to traditional banking channels.
The financial group plans to launch similar services as soon as South Korea introduces the necessary regulatory framework for digital assets. KB stated that developing its own infrastructure would reduce dependence on foreign platforms and accelerate the adoption of blockchain technology in mainstream financial services.
KB Kookmin Bank, one of KB Financial Group’s subsidiaries, is part of a national consortium of commercial banks established in June 2025 to support the development of the stablecoin sector, including the creation of a joint platform for issuing South Korean won-backed stablecoins.
