Table of Contents
Researcher
*[ASA News] is a bi-weekly newsletter where we share the most important news related to stablecoin in Asia. (2026.03.30~04.12)
1. [News] Stablecoin Wallet Linked to Existing Credit Card; Balance Deducted First, Then Automatic Fallback to Credit
Source: South Korea's KB Card taps Avalanche for 'hybrid' stablecoin credit card
KB Kookmin Card, one of South Korea's largest card companies, has announced it will build a hybrid stablecoin payment model with Avalanche. The announcement follows KB Card's January patent filing for a hybrid payment system that links existing credit cards to digital wallets, enabling customers to use both stablecoins and credit on their cards. The card payment model will be designed on Avalanche's public blockchain, with digital asset infrastructure firm OpenAsset collaborating to develop a comprehensive stablecoin system covering top-ups, payments, and settlement.
The hybrid payment mechanism prioritises the stablecoin balance in the digital wallet linked to the credit card. When the stablecoin balance is insufficient, the remaining amount is automatically charged to the credit card. KB Card stated that the goal is to lower the barrier to entry for stablecoins and digital assets while preserving the familiar credit card user experience, including existing rewards and benefits. This aligns with South Korea's ongoing efforts to establish a regulatory framework for a KRW stablecoin market through the Digital Asset Basic Act, expected to take shape this year. Major banks, fintechs, and payment providers are already preparing stablecoin product launches in anticipation of regulatory approval.
2. [Commentary] The Evolution of Stablecoin Cards: From 'Crypto Off-Ramp' to 'Credit Payment Integration'
The dominant stablecoin card model to date has been the prepaid debit card. The common thread across Crypto.com Visa, Coinbase Card, and similar offerings is a structure where users' crypto assets or stablecoin balances are converted to fiat at the point of payment. The Bridge-Visa partnership follows the same logic: Bridge deducts from the user's stablecoin balance and settles with merchants in fiat through the Visa network. Nium's recently launched stablecoin card issuance platform likewise connects to Visa and Mastercard networks via a single API but ultimately converts stablecoins to fiat at the point of merchant settlement.
KB Card's hybrid model introduces a differentiating approach. While existing models move from the crypto ecosystem outward to traditional payment networks, a "crypto-to-fiat" direction, KB Card starts from existing credit card infrastructure and absorbs stablecoins as a payment option: a "credit card-to-stablecoin integration" direction. Users do not receive a new card. They link a digital wallet to their existing KB credit card, and if a stablecoin balance is available, it is deducted first; if insufficient, the transaction automatically switches to credit. The existing rewards structure is preserved. In this framework, stablecoins are naturally incorporated as "just another balance" for the user. Whether KB Card's approach will reach commercialisation, and in what form, after KRW stablecoin regulations are finalised remains uncertain, but the design direction itself signals the next phase of the stablecoin card market.
The author of this report may have personal holdings or financial interests in assets or tokens discussed herein. However, the author affirms that no transactions have conducted using material non-public information obtained in the course of research or drafting. This report is intended solely for general information purposes and does not constitute legal, business, investment, or tax advice. It should not be used as a basis for making any investment decisions or as guidance for accounting, legal, or tax matters. Any references to specific assets or securities are made for informational purposes only and should not be construed as an offer, solicitation, or recommendation to invest. The opinions expressed herein are those of the author and may not reflect the views of any affiliated institutions, organizations, or individuals. The opinions and analyses expressed herein are subject to change without prior notice. In addition, beyond the individual disclosures included in each report, Four Pillars, may hold existing or prospective investments in some of the assets or protocols discussed herein. Furthermore, FP Validated, a division of Four Pillars, may already be operating as a node in certain networks or protocols discussed herein or may do so in the future. Please see here for FP Validated’s participating network disclosures and here for broader disclosure details.
