South Korea’s Gwangju Bank and Toss successfully test stablecoin QR payments

Gwangju Bank and South Korean fintech company Toss have successfully completed a proof of concept for stablecoin payments using QR codes, allowing customers to make transactions…

South Korea's Gwangju Bank and Toss successfully test stablecoin QR payments - 1

Gwangju Bank and South Korean fintech company Toss have successfully completed a proof of concept for stablecoin payments using QR codes, allowing customers to make transactions through connected banking and payment apps.

Summary

Gwangju Bank and Toss successfully completed a stablecoin QR payment trial connecting their mobile apps with Toss Place merchant terminals.
The payment process allowed customers to scan merchant QR codes and transfer stablecoins directly between digital wallets.
Both companies are preparing a second trial to simplify transactions and are discussing additional tests with merchants in Gwangju and Jeonnam.
The trial comes as South Korean banks expand stablecoin payment experiments while lawmakers prepare to review new digital asset legislation in November.

According to an Oct. 8 report by Yonhap News, the two companies developed and tested a payment process connecting Gwangju Bank’s mobile banking app, the Toss app, and Toss Place merchant payment terminals.

The trial was designed to check whether customers could use stablecoins for everyday purchases without going through complicated payment procedures.

Under the system, customers select the stablecoin payment option in Gwangju Bank’s app, which redirects them to the QR scanning screen in Toss.

Customers then scan the QR code displayed on a merchant’s Toss Place terminal, review the payment amount, and confirm the transaction.

Once the payment is approved, stablecoins move directly from the customer’s wallet to the merchant’s wallet. Customers can return to the Gwangju Bank app to check the transaction result.

Gwangju Bank and Toss plan another stablecoin payment trial

Following the successful technical verification, Gwangju Bank and Toss are preparing a second proof of concept to improve the payment process.

The next phase will focus on reducing the number of steps customers must complete before making a purchase.

Both companies are discussing additional testing with actual merchants in South Korea’s Gwangju and Jeonnam regions, although no date has been announced for the next trial.

The initial exercise verified the technical connection between the participating apps and payment terminals. Gwangju Bank has not announced a commercial launch date or identified which stablecoin would be supported in a future public service.

Gwangju Bank Vice President Byun Mi-kyung said the project established a technical foundation for the bank to respond to developments in digital asset payments.

She said the trial helped the companies evaluate the payment experience from the customer’s perspective.

Toss has pursued other stablecoin payment partnerships

Gwangju Bank’s trial follows several blockchain payment projects involving Toss and its banking affiliate.

In July, Toss partnered with Optimism and Sunnyside Labs to examine blockchain infrastructure for won-denominated stablecoins under a three-month technology verification program, as previously reported by crypto.news.

The agreement covered payment settlement, privacy protection, and compliance requirements using Optimism’s OP Stack and Sunnyside Labs’ Privacy Boost technology.

Toss planned to assess whether the infrastructure could handle financial transactions while meeting security and regulatory standards expected of institutional payment systems.

During the same month, stablecoin issuer Circle signed an agreement with Toss to explore USDC-based payment services, digital wallets, and programmable payments.

Circle reached a separate agreement with Kakao Group covering stablecoin payments, remittances, and digital asset infrastructure.

South Korean banks are testing stablecoin payments

Other South Korean financial institutions have been developing payment systems using stablecoins while lawmakers work on legislation governing their issuance and use.

In May, KB Financial Group completed a proof of concept covering won-denominated stablecoin issuance, offline QR payments, merchant settlement, and international remittances.

Its stablecoin payment trial involved KG Inicis, Kaia, and OpenAsset, with a remittance to Vietnam completed in under three minutes and reported fees roughly 87% lower than conventional methods.

More recently, Shinhan Financial Group partnered with Visa in August to develop stablecoin payment infrastructure and examine the use of digital assets in card settlement.

The agreement included technical work on stablecoin issuance, transfers, and redemption, alongside payment services for businesses and consumers.

South Korea prepares stablecoin legislation

South Korean regulators are working on a legal framework for stablecoins as banks and fintech companies continue their payment experiments.

In September, the Financial Services Commission confirmed plans for a November review of the country’s second-stage digital asset legislation.

The proposed framework covers digital asset issuance and distribution, with stablecoin regulation among the main issues under discussion.

The regulator said its proposals and legislation submitted by lawmakers were moving in the same direction, although the framework had not yet been finalized.

Separately, the Bank of Korea has supported an approach under which won-denominated stablecoins would initially be issued by bank-led consortiums.

Disagreements over issuance requirements and the respective roles of banks and fintech companies have remained part of the legislative discussions.

South Korea’s National Assembly is expected to examine the proposed digital asset framework in November, with lawmakers seeking to complete the country’s second-stage legislation during 2026.

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