Busan Bank completes KRW stablecoin pilot on Kaia blockchain

South Korea's Busan Bank (BNK Financial Group) finished a proof‑of‑concept pilot for a Korean won‑pegged stablecoin on the public Kaia blockchain. The test, conducted with partners AhnLab Blockchain Company, OpenAsset, Kaia and node operator Lambda256 as part of the K STAR alliance, covered the full stablecoin lifecycle – issuance, top‑up, payment and settlement – using real operational payment data. Four load scenarios (normal, peak, irregular and 24‑hour continuous) achieved a 100 % success rate with transaction times under one second. The pilot also demonstrated programmable digital money rules that can restrict usage by location, time or settlement method, and trialled a fee‑sponsorship model that removes gas‑fee charges from end users. The initiative follows similar pilots by larger Korean banks such as KB Financial Group and occurs while regulatory rules for bank‑issued stablecoins are still being shaped, highlighting growing competition among South Korean financial institutions to secure a foothold in stablecoin infrastructure before formal guidance is issued.