Kaia ATMs Let Tourists Convert USDT to Cash in South Korea

Foreign visitors to South Korea can now convert USDT stablecoins to cash through Kaia-branded ATMs at major tourist sites. The service launched on July 31, 2025, as a pilot of stablecoin-to-fiat conversion under regulatory sandbox rules.

Blockchain firm DaWinKS built and operates the ATMs with the Kaia DLT Foundation. The machines accept Kaia-issued USDT, which runs on a public chain created by merging Klaytn and Finschia. Kakao originally backed Klaytn while LINE supported Finschia.

Seven ATMs operate at high-traffic locations, including N Seoul Tower, Myeongdong Money Club, and multiple Lotte Mart branches. Tourists can convert Kaia-issued USDT into 85 different currencies or load funds onto local transit cards.

The ATMs are placed in familiar locations like convenience stores and transit hubs. Verified users follow on-screen guides to withdraw local or foreign currency or charge transportation cards. Authentication includes passport scans and biometric checks.

Only foreign passport holders can use the service under sandbox rules. Korean residents cannot access the ATMs even if they own cryptocurrency. The restriction reflects regulators’ careful approach as they evaluate digital asset payments against potential risks to domestic financial stability.

Dr. Sangmin Seo, chairman of the Kaia DLT Foundation, said there is “real desire to pursue” stablecoin payment infrastructure in South Korea through “pilot rollouts” before wider implementation. He noted that KYC requirements, from passport scans to biometric checks, create one of the “greatest bottlenecks for offline Web3” adoption.

Some local users have tried to use the ATMs despite official limits, showing demand for stablecoin cash-out services beyond tourists. This interest raises questions about enforcement and whether future versions might include domestic users.