Interest in a won-linked stablecoin is growing in South Korea, and the country’s largest commercial banks are joining forces to issue one through a joint initiative.
According to a June 25 report from local media Economic Review, eight of South Korea’s top banks are working with the Open Blockchain and DID Association and the Financial Settlement Institute to build a stablecoin venture.
Participating banks include KB Kookmin, Shinhan, Woori, Nonghyup, Industrial Bank of Korea, Suhyup, Citibank Korea, and SC First Bank. The project aims to issue a stablecoin backed by the Korean won and reduce the dominance of dollar-based digital assets.
The report comes on the heels of the Financial Services Commission’s release of a new roadmap for stablecoins and crypto ETFs, part of a broader push to align the local market with global standards. It also noted that the initiative is in response to growing concerns within the banking sector about losing ground to foreign-issued stablecoins in the domestic market.
“There is a shared sense of crisis that if things continue this way, foreign dollar coins could dominate the domestic market,” a bank official reportedly said. “It is time to secure both the independence and competitiveness of the domestic financial system through a won-based digital currency.”
KB Kookmin, South Korea’s largest bank and a member of the new consortium, has also filed trademarks related to stablecoin symbols as part of the joint initiative, according to the Korea Intellectual Property Rights Information Service.
While the exact method of issuance has yet to be finalized, the banks are said to be reviewing two stablecoin models including a trust-based structure and a deposit-linked approach, both designed to ensure full 1:1 backing with the Korean won. The launch is expected by late 2025 or early 2026, pending regulatory approval.
Meanwhile, South Korean Democrats are also pushing for a faster rollout of government-issued won-pegged stablecoins, with a similar goal of strengthening the national fiat and boosting global demand for won-backed assets.
