Avalanche Stablecoin VAT Refund Pilot by NH Nonghyup Bank
NH Nonghyup Bank has launched a proof-of-concept Avalanche stablecoin VAT refund pilot in partnership with Avalanche, Fireblocks, Mastercard and Worldpay. The trial uses simulated transactions and smart contracts to test a real-time settlement model for a 10% VAT refund for inbound tourists in South Korea, without using real customer funds. This Avalanche stablecoin VAT refund service aims to replace the traditional paper-based process, cut settlement times, reduce operational costs and enhance security and auditability. NH Nonghyup Bank plans to expand the solution as regulatory guidelines for stablecoin payments and refunds evolve, setting a potential template for broader stablecoin adoption and cross-border payment infrastructure.
Bullish
The proof-of-concept on Avalanche backed by major partners demonstrates a clear use case and institutional support, likely increasing demand for AVAX to power transactions and smart contracts. In the short term, successful trial outcomes could boost market sentiment around Avalanche’s network utility and token value. Over the long term, integrating stablecoin VAT refunds into mainstream banking services can cement Avalanche’s role in real-time payment infrastructure, driving sustained on-chain activity and token adoption. This positions the news as bullish for AVAX.