KB Kookmin Card is developing a hybrid payment system with Avalanche that allows users to spend stablecoins directly from a blockchain wallet using a standard credit card.
The system automatically deducts from a linked stablecoin wallet first, then falls back to traditional credit if the balance is insufficient, maintaining a seamless user experience.
The company filed a patent for the structure in January 2026 as part of a broader push to integrate digital assets into everyday payments.
Avalanche will handle the on-chain components, including wallet transfers and settlement, while KB’s existing infrastructure manages card processing and fiat payouts.
The design ensures merchants continue receiving payments through traditional rails, avoiding disruption to current systems.
The initiative comes as South Korean financial institutions accelerate efforts to launch regulated stablecoin products and integrate them into mainstream finance.
The move signals growing convergence between blockchain-based payments and traditional financial systems, with stablecoins increasingly positioned for real-world use cases.
At the time of reporting, Avalanche price was $8.90.