BNK Busan Bank, together with AhnLab Blockchain Company, OpenAsset, Kaia, and Lambda256, has completed a comprehensive pilot of a Korean won stablecoin payment platform on the Kaia mainnet. The test, part of the K STAR alliance's work to build won-based stablecoin infrastructure, covered the full lifecycle: issuance, circulation, balance top-up, payment, and settlement.
Five-party alliance covers end-to-end flow
BNK Busan Bank validated top-up, payment, and settlement functions under a policy-based currency model. AhnLab designed the wallet to handle transactions and settlements. OpenAsset managed stablecoin issuance and asset alignment. Kaia supplied mainnet infrastructure. Lambda256 oversaw node operations and transaction monitoring. Kaia announced the KRW stablecoin infrastructure for digital regional currencies in South Korea has undergone successful testing.
Programmable rules embedded in digital currency
The pilot went beyond standard token transfers—it verified programmable digital money models that can enforce restrictions by usage area, expiration date, or settlement method based on payment location. This mirrors South Korea's regional support payments and coupon initiatives.
Four scenarios using real operational data, 100% success
Using BNK Busan Bank's actual payment data, the partners ran four test scenarios: normal load, peak load, irregular load, and uninterrupted 24-hour operation. Every scenario achieved a 100% success rate, with each transaction completed in under one second. The pilot also tested a fee sponsorship model (users not charged direct gas fees) and a real-time transaction monitoring system. AhnLab Blockchain Company CEO Lim Ju-young confirmed the local digital currency solution could operate stably in real-world settings, and said the goal is to expand to stablecoins, digital assets, and cross-border settlement services.
Banks move ahead before regulations are finalized
The Busan pilot comes as South Korean financial institutions race to secure stablecoin infrastructure before clearer regulation arrives. In May 2026, KB Financial Group—the holding company of the country's largest credit institution—along with KG Inicis and OpenAsset, ran a similar pilot on Kaia: payments via QR codes at Hollys Coffee stores, and the won stablecoin converted into a dollar-pegged stablecoin for cross-border remittance to Vietnam. The transfer completed in under three minutes at roughly 87% lower cost than SWIFT.
South Korean financial firms are positioning across wallets, settlement lines, and fund transfer channels, even as it remains undecided who will be authorized to issue won-pegged coins. The Digital Asset Basic Act is still pending due to a jurisdictional dispute between the Bank of Korea and the Financial Services Commission. BNK Busan Bank and its partners aim to extend the model to policy funds, digital vouchers, potential CBDC projects, and other won-based stablecoin services. However, when these products reach end-users depends on the regulatory calendar set by authorities in Seoul.