South Korea’s Biggest Banks Team Up to Launch Game-Changing Won-Backed Stablecoin!

Updated

June 26, 2025

Gambar South Korea’s Biggest Banks Team Up to Launch Game-Changing Won-Backed Stablecoin!

Jakarta, Pintu News – In a bid to strengthen digital financial sovereignty, eight leading banks in South Korea are collaborating to launch a stablecoin tied to the Korean won (KRW) exchange rate.

The initiative comes in response to the dominance of US dollar-based digital currencies in global and regional markets. The joint project is expected to not only enhance the independence of the domestic financial system but also improve South Korea’s position in the global digital economy.

Bank Consortium and Issuance Model

The consortium, which consists of KB Kookmin Bank, Shinhan Bank, Woori Bank, and several others, is working with the Open Blockchain, Decentralized Identity (DID) Alliance, and the Korea Financial Telecommunications and Clearings Institute.

They are exploring two issuance models: a trust-based model and a deposit token model. Both models are under technical and legal review to ensure that each stablecoin has full 1:1 backing with the Korean won.

The project is scheduled to launch in late 2025 or early 2026, pending regulatory approval. This initiative not only supports President Lee Jae Myung’s vision of strengthening the role of local currencies in the digital economy, but also responds to concerns about the potential dominance of dollar-backed stablecoins in the domestic market.

Government Regulations and Policies

south korea stablecoin regulation — Sumebr: Crypto News

The South Korean government, under the leadership of President Lee Jae Myung, has shown strong support for the development of digital assets. As part of its pro-crypto policy, the government has proposed the Digital Asset Basic Act which aims to provide a licensing framework for stablecoin issuers.

In addition, the law stipulates that issuers must have an owner’s capital of at least $500,000. The Bank of Korea (BOK) is taking a more cautious approach. While not opposing the initiative, BOK Governor Rhee Chang-Yong has warned that stablecoins tied to the won could inadvertently increase demand for dollar-backed tokens.

Therefore, BOK suggests a gradual rollout and emphasizes the importance of safety nets to prevent financial market disruptions and protect users.

Global Implications and Competition

This initiative reflects a global shift where major banks in other countries such as Bank of America and JPMorgan are also exploring stablecoin ventures.

With the GENIUS Act in place in the United States, the market is increasingly optimistic about the prospects of ‘Stablecoin Summer’. South Korea hopes to maintain its leadership and competitiveness in the global digital asset market by reducing reliance on dollar-backed stablecoins.

By launching a won-based stablecoin, South Korea is not only seeking to strengthen its national currency but also increase global demand for won-backed assets. This is a strategic move to ensure that South Korea’s digital economy remains relevant and competitive on the world stage.

Overall, the collaboration between major banks in South Korea to launch a won-based stablecoin marks a new chapter in the integration of financial and digital technologies.

With full support from the government and a regulatory framework under development, the future of digital finance in South Korea looks bright.

This initiative is expected to bring further stability and innovation into the domestic financial system and enhance South Korea’s position in the global market.

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