South Korea’s NHN KCP Tests Avalanche Stablecoin Payments

South Korea’s NHN KCP has started live stablecoin payment testing on a private Avalanche Layer 1

ContentsAvalanche Network Powers Payment TrialAsian Institutions Expand Avalanche UsageRegulation Shapes Commercial TimelineThe pilot began on May 21 and covers online, in-store, and app-based transactions. Settlements are complete in under two seconds, marking a major trial for blockchain payments in South Korea.

Avalanche Network Powers Payment Trial

NHN KCP, one of South Korea’s largest payment companies, developed the system with Ava Labs. The company processed ₩51.5 trillion, or about $38 billion, last year. Its test uses a dedicated Avalanche Layer 1 for payment infrastructure.

The pilot operates inside NHN KCP’s headquarters, where about 700 employees use stablecoins at checkout. Users scan QR codes during checkout, and the system completes settlement almost instantly. The structure gives the company a controlled setting to test speed, reliability, and merchant usability.

The payment trial connects with PAYCO, a popular South Korean payment app. PAYCO users can buy and redeem gift certificates through stablecoins. NHN KCP has introduced a dashboard that allows merchants to track transactions and settlements in real time.

Smart contracts automate settlements between merchants and the payment processor. NHN KCP told local media that it plans to build a full-stack payment solution across online, offline, and merchant transactions.

Asian Institutions Expand Avalanche Usage

The NHN KCP pilot adds to a broader wave of Avalanche adoption across Asian payment and settlement markets. Institutions in Japan, Singapore, Thailand, and South Korea now use Avalanche infrastructure for stablecoins, tokenized assets, and cross-border payments.

In Japan, TIS has launched its Multi-Token Platform on Avalanche. The company processes about half of Japan’s credit card transactions. Progmat plans to move more than $2 billion in tokenized real estate and bond assets from Corda to its own Avalanche Layer 1 by June 2026.

SMBC is exploring continuous global stablecoin transfers through Avalanche. In Singapore, StraitsX operates a dedicated Avalanche Layer 1 for regulated stablecoins XSGD and XUSD. Its partnerships with Grab and Alipay Plus aim to support stablecoin payments across Southeast Asia while hiding blockchain functions from users.

Thailand’s Orbix Technology, a KBank subsidiary, has launched cross-border QR payments between Thailand and Singapore. The system uses Avalanche rails for instant foreign exchange settlement. In South Korea, KB Kookmin Card is building a model that links credit cards with digital wallets.

Regulation Shapes Commercial Timeline

NHN KCP’s wider rollout depends on South Korea’s Digital Asset Basic Act. Lawmakers continue to draft the framework, which will define licensing rules for stablecoin issuers and distributors.

The debate has moved beyond the June 3 local elections. The Financial Services Commission plans a gradual approach, starting with strict requirements for regulated entities. NHN KCP has filed trademarks for KRW-pegged and USD-pegged stablecoins, including USDW.