Gwangju Bank and Toss Complete QR-Based Stablecoin Payment Trial in South Korea

TLDR

• A successful proof-of-concept test for QR code-based stablecoin transactions was conducted by Gwangju Bank and Toss.
• The system enables users to scan merchant QR codes via Toss Place, transferring stablecoins wallet-to-wallet.
• Plans for a follow-up trial focused on streamlining transaction steps are underway, though timing remains unconfirmed.
• Toss maintains active blockchain initiatives with Circle, Optimism, Sunnyside Labs, and the Solana Foundation.
• November marks the anticipated review period for South Korea’s digital asset framework, including stablecoin regulations.

A South Korean regional bank has successfully completed an initial trial of stablecoin-based payments through QR code technology. Gwangju Bank partnered with fintech platform Toss to integrate the bank’s mobile application with Toss’s payment ecosystem, including its merchant terminal network.

According to Yonhap News on Oct. 8, the experiment aimed to evaluate whether digital currency could facilitate routine transactions with minimal friction for end users.

How the Stablecoin QR Payment Works

The payment flow begins when users choose the stablecoin option within Gwangju Bank’s mobile application. This action redirects them to the QR code scanner interface within Toss.

Users then scan a QR code displayed at participating merchants through Toss Place terminals. After verifying the transaction amount, they authorize the payment.

Following confirmation, digital currency transfers directly between the customer’s and merchant’s wallets. Users can navigate back to Gwangju Bank’s application to verify completion.

Byun Mi-kyung, Vice President at Gwangju Bank, noted the initiative established technical groundwork enabling the institution to adapt to evolving digital payment landscapes. She emphasized the trial provided valuable insight into user experience considerations.

Second Trial and Other Bank Tests

Both organizations are developing a follow-up proof-of-concept phase. This iteration will prioritize minimizing the transaction steps required from customers during purchases.

Discussions are ongoing regarding expanded merchant testing throughout the Gwangju and Jeonnam areas. However, no timeline has been established for subsequent trials.

Gwangju Bank has yet to announce when or whether a public-facing service will launch. The institution has also not disclosed which specific stablecoin would power any commercial offering.

Toss has engaged in multiple blockchain payment initiatives throughout the year. July saw a collaboration with Optimism and Sunnyside Labs on a three-month research program examining won-backed stablecoin infrastructure.

During the same period, Circle, the company behind USDC, entered an agreement with Toss to investigate digital wallet capabilities, USDC integration, and programmable payment features. Circle separately partnered with Kakao Group, though neither arrangement has yielded consumer products.

June brought a collaboration between Toss Bank and the Solana Foundation focused on evaluating stablecoin applications for cross-border money transfers and settlement processes.

Additional Korean financial institutions are pursuing parallel experiments. KB Financial Group completed testing in May encompassing won-denominated stablecoin creation, physical-location QR transactions, and remittances—including a Vietnam transfer executed in under three minutes with approximately 87% fee reduction compared to traditional channels.

August witnessed Shinhan Financial Group partnering with Visa to develop comprehensive stablecoin payment systems spanning issuance, transfers, redemption, and card-based settlement.

South Korean authorities continue developing stablecoin regulatory frameworks. The Financial Services Commission confirmed in September that the nation’s second-phase digital asset legislation would undergo review in November.

The Bank of Korea has endorsed an approach prioritizing bank-led consortiums for initial won-denominated stablecoin issuance. Ongoing negotiations continue addressing the division of responsibilities between traditional banks and fintech companies.

The National Assembly is scheduled to examine the proposed regulatory structure in November. Legislators intend to finalize second-stage legislation throughout 2026.