South Korean payment service provider NHN KCP launched a stablecoin payment pilot program on a private Avalanche network on May 21, 2026. The project, co-developed with Ava Labs, allows approximately 700 employees at the company’s headquarters to use digital assets for daily purchases at the internal café and cafeteria. This test represents one of the largest stablecoin payment trials in the region, focusing on verifying the feasibility of commercializing blockchain-based settlements for both online and offline environments.
The pilot leverages a dedicated Avalanche Layer 1 blockchain built specifically for payments infrastructure via the Ava Cloud platform. Employees participate by scanning QR codes for transactions, which achieve finality in under two seconds. This high-speed authorization is essential for retail environments where transaction delays are a major hurdle. NHN KCP, led by CEO Jun-seok Park, processed approximately ₩51.5 trillion ($38 billion) in volume last year and is now looking toward broadening the utility of digital assets through secure, on-chain encryption.
Integrating the system with popular mobile tools, NHN KCP has linked the pilot to PAYCO, a major South Korean payment application. This allows users to purchase and redeem gift certificates using stablecoins. To simplify the process for merchants, the firm launched a “stablecoin payment admin page.” This dashboard allows non-technical business owners to monitor settlements and transaction history in real-time without needing to manage the underlying blockchain mechanics directly.
Strategic partnerships and the cross-border vision
NHN KCP’s entry into the blockchain space is supported by substantial regional partnerships. On April 21, 2026, the company signed a strategic Memorandum of Understanding (MOU) with NH NongHyup Bank. Vice President Jung Seung-gyu of NHN KCP and Kim Joo-sik of NH NongHyup Bank’s AI Data Division are overseeing the collaboration. Their shared goal is to explore tokenized deposit models and cross-border payment solutions that could bypass traditional banking latencies.
The company is already preparing for a future where these assets move beyond internal tests. NHN KCP has reportedly filed trademarks for multiple stablecoins, including KRW-pegged and USD-pegged versions, with one identified specifically as USDW. This signals an intention to build a unified structure for global merchant transactions. As investors monitor altcoin selling pressure, NHN KCP’s focus remains on the practical stability provided by fiat-pegged tokens for everyday commerce.
According to Ava Labs Head of Asia Justin Kim, the broader release of the Layer 1 mainnet will depend on how South Korean authorities classify stablecoins. The technical infrastructure is designed to provide “invisible” blockchain mechanics, ensuring that while the back-end uses smart contracts for automated settlement, the user experience remains as simple as a standard mobile payment. The broader payment-focused Layer 1 network transition is scheduled for completion by June 2026.
Avalanche adoption expands across Asian financial hubs
The NHN KCP pilot is part of a wider trend of financial institutions in Asia adopting Avalanche infrastructure. In Japan, TIS, which processes half of the country’s credit card transactions, has rolled out a Multi-Token Platform on the network. Another Japanese firm, Progmat, is currently migrating over $2 billion in tokenized real estate and bond assets to its own Avalanche Layer 1, a move expected to conclude next month.
Regional activity elsewhere includes:
- Singapore: StraitsX settles regulated XSGD and XUSD stablecoins on a dedicated Avalanche layer, partnering with Grab for market integration.
- Thailand: Orbix Technology, a KBank subsidiary, launched cross-border QR payments with instant foreign exchange settlement using Avalanche rails.
- South Korea: KB Kookmin Card is building a hybrid model to link traditional credit cards to digital wallets for interchangeable stablecoin and credit use.
In South Korea, the commercial future of these systems waits on the Digital Asset Basic Act. This legislation, currently being drafted, will establish the licensing requirements for issuers and determine if stablecoins fall under electronic money regulations. While the Financial Services Commission (FSC) intends to regulate the sector incrementally, starting with strict requirements for regulated entities, NHN KCP has not yet set a firm date for a full commercial launch of its payment solution.