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December 24, 2025
South Korean payment processor BC Card has successfully concluded a pilot project that enabled foreign users to pay domestic merchants using stablecoins.
The initiative marks a significant step toward integrating digital assets into traditional payment networks amid evolving regulatory discussions.
Key Takeaways
- BC Card completed a stablecoin pilot enabling foreign users to pay Korean merchants via digital prepaid cards.
- Partnerships with Wavebridge, Aaron Group, and Global Money Express facilitated seamless conversions from overseas wallets.
- No merchant changes required; transactions processed through existing card infrastructure.
- Pilot prepares for regulatory evolution amid FSC-BOK disputes on stablecoin issuance rules.
- Positions South Korea for compliant stablecoin integration in cross-border payments.
Pilot Details and Execution
BC Card, which processes over 20% of South Korea's card transactions and serves approximately 3.4 million merchants, announced the pilot's completion on December 23, 2025.
The two-month trial, launched in October, involved partnerships with blockchain firm Wavebridge, wallet provider Aaron Group, and cross-border remittance company Global Money Express.
Foreign users converted stablecoins held in partnered overseas wallets into digital prepaid cards issued by BC Card. These cards allowed payments at local merchants, including convenience stores, cafes, and supermarkets, via QR codes.
No physical cards or currency exchanges were required.
The system integrated stablecoins into BC Card's existing authorization and settlement infrastructure. Merchants processed transactions as standard card payments, requiring no hardware upgrades or additional training. The pilot addressed real-time processing for approvals, cancellations, and corrections, ensuring operational stability.
BC Card CEO Choi Won-seok emphasized stablecoins' utility for cross-border payments, noting their potential to enhance experiences for foreign consumers without disrupting domestic merchant workflows.
Regulatory Context in South Korea
South Korea's stablecoin regulations remain in flux. The Financial Services Commission (FSC) missed a December 10, 2025, deadline to submit draft proposals for the second phase of the Virtual Asset User Protection Act, which would cover won-pegged stablecoin issuance and distribution.
Delays stem from disagreements between the FSC and the Bank of Korea (BOK). The BOK advocates requiring banks to hold at least 51% ownership in stablecoin issuers, while other stakeholders push for broader participation.
Current rules restrict South Korean residents from certain crypto payment services, limiting the pilot to foreign users and tourists. BC Card framed the project as long-term preparation for regulatory changes rather than a short-term test.
The company has established an internal team to monitor domestic and global stablecoin trends. Earlier in 2025, South Korean credit card firms formed a joint task force in response to discussions on won-denominated stablecoins.
Implications for Payment Infrastructure
The pilot demonstrates technical feasibility for hybrid stablecoin-card systems. By using prepaid cards as an intermediary, it bridges blockchain efficiency with traditional networks, reducing cross-border fees and delays for international users.
BC Card processes transactions across retail, dining, and services, with majority ownership by telecommunications giant KT Corp providing robust digital infrastructure support.
The approach positions incumbents to coexist with onchain payments. Merchants receive fiat settlements, while users benefit from stablecoin speed and low costs.
Broader adoption depends on regulatory clarity. BC Card plans to expand partnerships and develop compliant models, aiming to lead a "Korean-style" stablecoin payment infrastructure.
Broader Trends in Asia
South Korea's initiative aligns with regional shifts toward tokenized payments. Stablecoin transaction volumes have grown significantly globally, with forecasts suggesting they could surpass major networks in efficiency for cross-border use.
Similar pilots and integrations in other Asian markets highlight stablecoins' role in reducing remittance costs and enhancing tourist spending. BC Card's success provides a model for regulated stablecoin adoption without overhauling merchant systems.
Conclusion
BC Card's successful stablecoin pilot proves hybrid models can integrate digital assets into legacy payment systems effectively.
As regulations progress, this positions South Korea to advance regulated stablecoin use in Asia, prioritizing cross-border efficiency and merchant stability.
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FAQs:
1. What was the BC Card stablecoin pilot?
A two-month trial allowing foreign users to convert stablecoins into digital prepaid cards for payments at South Korean merchants.
2. Which stablecoins were used?
Specific stablecoins were not disclosed, but likely included major foreign-currency options like USDT or USDC.
3. Did merchants need to adopt new technology?
No; payments settled through BC Card's standard network, appearing as regular card transactions.
4. Why focus on foreign users?
Current regulations limit crypto payment services for South Korean residents; the pilot targeted tourists to test cross-border utility.
5. What are the next steps for BC Card?
Expand cooperation with partners and develop regulation-compliant stablecoin models for broader infrastructure.
6. How does this impact stablecoin regulation in South Korea?
It highlights infrastructure readiness while regulations remain delayed due to inter-agency debates.
Disclaimer:
This content is provided for informational and educational purposes only and does not constitute financial, investment, legal, or tax advice; no material herein should be interpreted as a recommendation, endorsement, or solicitation to buy or sell any financial instrument, and readers should conduct their own independent research or consult a qualified professional.
