South Korea’s Gwangju Bank Tests Stablecoin Payments With Toss

TLDR

• Gwangju Bank and fintech company Toss completed a proof of concept for stablecoin payments using QR codes.
• Customers scan a merchant’s Toss Place QR code, and stablecoins move directly from their wallet to the merchant’s wallet.
• A second trial is being prepared to reduce the number of payment steps, but no date has been set.
• Toss has also worked with Circle, Optimism, Sunnyside Labs, and the Solana Foundation on blockchain payment projects.
• South Korea’s National Assembly is expected to review new digital asset legislation, including stablecoin rules, in November.

Gwangju Bank and South Korean fintech company Toss have completed a test of stablecoin payments using QR codes. The trial linked the bank’s mobile app, the Toss app, and Toss Place merchant payment terminals.

Yonhap News reported the results on Oct. 8. The test was designed to check whether customers could use stablecoins for everyday purchases without complicated steps.

How the Stablecoin QR Payment Works

Customers start by selecting the stablecoin payment option in Gwangju Bank’s app. The app then sends them to the QR scanning screen in Toss.

Next, customers scan the QR code shown on a merchant’s Toss Place terminal. They review the payment amount and confirm the transaction.

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

Gwangju Bank Vice President Byun Mi-kyung said the project built a technical foundation for the bank to respond to changes in digital asset payments. She said the trial also helped the companies judge the payment experience from a customer’s point of view.

Second Trial and Other Bank Tests

The two companies are now preparing a second proof of concept. This phase will focus on cutting the number of steps customers must take before buying something.

They are also discussing more tests with real merchants in the Gwangju and Jeonnam regions. No date has been set for the next trial.

Gwangju Bank has not announced a commercial launch date. It also has not said which stablecoin a public service would support.

Toss has been involved in several other blockchain payment projects this year. In July, it partnered with Optimism and Sunnyside Labs on a three-month program to study infrastructure for won-denominated stablecoins.

That same month, stablecoin issuer Circle signed an agreement with Toss to explore USDC payments, digital wallets, and programmable payments. Circle also signed a separate deal with Kakao Group, and neither agreement launched a commercial product.

In June, Toss Bank partnered with the Solana Foundation. The project is studying whether stablecoins could support international money transfers and settlement.

Other South Korean banks are running their own tests. In May, KB Financial Group completed a trial covering won-denominated stablecoin issuance, offline QR payments, and remittances, including a transfer to Vietnam finished in under three minutes with fees about 87% lower than usual methods.

In August, Shinhan Financial Group partnered with Visa to build stablecoin payment infrastructure. The deal covers issuance, transfers, redemption, and card settlement.

South Korean regulators are still working on rules for stablecoins. In September, the Financial Services Commission confirmed it will review the country’s second-stage digital asset legislation in November.

The Bank of Korea has supported a plan where bank-led groups would issue won-denominated stablecoins first. Disagreements over the roles of banks and fintech firms remain part of the talks.

The National Assembly is expected to examine the proposed framework in November. Lawmakers aim to complete the second-stage legislation during 2026.

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