Eight major South Korean banks, including Kookmin Bank, Shinhan Bank, and Woori Bank, are collaborating to launch a stablecoin pegged to the Korean Won (KRW). This consortium aims to reduce dependence on US dollar-backed stablecoins that currently dominate crypto trading and to strengthen South Korea's leadership in the digital asset market.
The project is being developed in partnership with the Open Blockchain, Decentralized Identity (DID) Alliance, and the Korea Financial Telecommunications and Clearings Institute. The issuance model—whether trust-based or deposit-token—is still under technical and legal review. Subject to regulatory approvals, the stablecoin initiative could launch by late 2025 or early 2026.
This development aligns with President Lee Jae Myung's crypto-friendly administration policies, which promote Won-backed digital currencies to boost the local economy. The recently proposed Digital Asset Basic Act outlines licensing frameworks demanding stablecoin issuers to hold significant capital, enhancing regulatory oversight. Despite enthusiasm, the Bank of Korea urges caution; Governor Rhee Chang-Yong and Deputy Governor Ryoo Sang-dai emphasized a gradual rollout starting with regulated banks to protect financial stability and manage foreign exchange risks.
The Bank of Korea continues to develop its own central bank digital currency (CBDC) as a countermeasure, with pilot tests underway. Globally, similar moves are seen from institutions like Visa and entities in Russia and Abu Dhabi, underscoring widespread interest in stablecoin adoption.