South Korean card giant completes stablecoin payments pilot for foreigners

South Korean payments processor BC Card just wrapped a pilot that let foreign users pay local merchants using stablecoins. This isn't just a test — it's prep for a full-scale stablecoin payment system, responding to South Korea's evolving crypto regulations.

The pilot was announced Tuesday and involved blockchain company Wavebridge, wallet provider Aaron Group, and cross-border remittance provider Global Money Express. Foreign users converted stablecoins from overseas wallets into digital prepaid cards that worked with BC Card's system.

BC Card is a massive player — it processes over 20% of South Korea's card transactions and covers 3.4 million domestic merchants. Its majority owner is KT Corp, one of the country's big three telecom giants.

In late July, local media reported that credit card companies were scrambling to respond to perceived threats from stablecoins. The industry formed a joint task force as regulators opened discussions about won-based stablecoins.

BC Card reportedly launched an internal team to track stablecoin trends domestically and internationally. But regulations are taking longer than expected.

Earlier this month, South Korea's Financial Services Commission (FSC) missed a deadline to submit a draft proposal on stablecoin regulations. Lawmakers said the delay was caused by disagreements between the FSC and the Bank of Korea (BOK).

The core debate: BOK wants banks to own at least 51% of any stablecoin issuer seeking approval. Other regulators are pushing for a more diverse ecosystem.

Stablecoins are increasingly seen as an alternative or complement to traditional payment methods like cards or bank transfers.

Adoption is accelerating. YouTube now allows US content creators to receive payouts in PayPal USD (PYUSD). Meanwhile, Visa launched USD Coin (USDC) settlement services for some US-based financial institutions.