A path has been opened to withdraw Tether (USDT) as cash in Korea through a dollar-based stablecoin prepaid card. This means withdrawal and exchange are possible without going through a bank.
According to the financial industry on the 12th, the Lindat Pay Card can be easily withdrawn as Korean won through ATMs installed at banks and convenience stores nationwide. Currently, Lindat Pay Card is issuing physical cards that can be used at ATMs supporting overseas card withdrawals.
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Stablecoins like Tether held by users are first converted to dollars during ATM withdrawal and then exchanged to Korean won for withdrawal. The entire process is completed automatically within seconds. According to Lindat Pay, ATM withdrawal fees include a 1% exchange fee and a 2% ATM withdrawal fee. This means approximately 3% is charged for withdrawal in Korean won.
In this process, the Lindat Pay Card also serves an exchange role. Lindat Pay's fees are lower than private exchange shops in the Seoul area (3-4% fee) and competitive compared to domestic cryptocurrency ATMs targeting foreigners (3% fee). Particularly, it allows securing foreign currency without going through a bank during overseas travel. Experts analyze this could lead to a reduction in bank functions. Lindat Pay applies a unified exchange fee of 1.2% during payment, which is lower than the general bank exchange fee of 1.75%.
There are assessments that it can sufficiently replace travel cards promoting free exchange. Since stablecoins are fixed at a 1:1 value with dollars, there is no exchange procedure in countries where dollar payment is possible. Additionally, Lindat Pay Card can be registered for Apple Pay simple payment, making it more convenient than travel cards that require carrying a physical card throughout the trip.
- Kim Jung-woo
- woo@sedaily.com
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