{"id":76242,"date":"2025-06-26T06:19:31","date_gmt":"2025-06-26T06:19:31","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=76242"},"modified":"2025-06-26T06:19:31","modified_gmt":"2025-06-26T06:19:31","slug":"south-koreas-biggest-banks-join-forces-on-won-backed-stablecoin","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=76242","title":{"rendered":"South Korea\u2019s Biggest Banks Join Forces on Won-Backed Stablecoin"},"content":{"rendered":"

A group of South <\/span>Korea\u2019s<\/span> top commercial banks is taking a <\/span>major<\/span> step toward launching a stablecoin tied to the Korean won. A consortium including<\/span> KB Kookmin, Shinhan, Woori, Nonghyup, Industrial Bank of Korea, Suhyup, Citi Korea, and Standard Chartered Korea is leading the plan. Their goal is to bring a bank-issued digital won to market by the end of 2025 or early 2026.<\/span><\/p>\n

The idea behind this collaboration is to offer an alternative to the <\/span>rising<\/span> dominance of dollar-based stablecoins <\/span>like<\/span> USDT and USDC.\u00a0<\/span> Traders and users across South Korea\u2019s crypto ecosystem have widely used these foreign assets, often to fill gaps in payments and trading. But<\/span> with nearly 57 trillion won worth of dollar stablecoin trade volume moving through the country in the first quarter of 2025, local banks are <\/span>clearly<\/span> looking to <\/span>take back<\/span> control.<\/span><\/p>\n

Domestic Push for Monetary Control<\/span><\/h2>\n

This stablecoin initiative <\/span>is closely tied<\/span> to growing concerns about monetary sovereignty. <\/span>Financial authorities and lawmakers are <\/span>becoming uneasy<\/span> about <\/span>how much<\/span> influence foreign-denominated digital assets <\/span>now have<\/span> on local transactions.<\/span> Some view it as a gradual loss of national control, especially since private firms outside Korea issue and manage the currency used by Korean traders and consumers.<\/span><\/p>\n

Major move in South Korea!<\/p>\n

8 top banks are teaming up to launch a Korean Won stablecoin <\/p>\n

Two issuance models on the table:
Trust Model
Deposit Token Model<\/p>\n

Launch could happen by year-end pic.twitter.com\/agReNejLKI<\/a><\/p>\n

\u2014 SWFT Blockchain (@SwftCoin) June 25, 2025<\/a><\/p>\n\n

Banks working on the won-backed stablecoin are being supported by the Open Blockchain and DID Association, <\/span>along with<\/span> the Korea Financial Telecommunications and Clearings Institute.<\/span> These institutions are handling technical development and potential regulatory models. Two structures are <\/span>being considered<\/span>. One would involve holding user funds in trust, while the other would issue tokens directly against customer deposits.<\/span><\/p>\n

DISCOVER: 20+ Next Crypto to Explode in 2025<\/a><\/strong><\/p>\n

Central Bank Reactions<\/span><\/h2>\n

The Bank of Korea has responded cautiously. <\/span>Deputy Governor Ryoo Sang-dai <\/span>said<\/span> any rollout should begin with licensed commercial banks and <\/span>only later<\/span> expand to other firms.<\/span> Governor Rhee Chang-yong acknowledged the potential upside of a domestic stablecoin but also flagged possible side effects. One concern is that making it easier to exchange between stablecoins might <\/span>actually<\/span> increase demand for dollar-backed assets, not reduce it.<\/span><\/p>\n

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The central bank is already working on its own wholesale CBDC model for institutions. However, it<\/span>\u00a0appears<\/span> willing to let commercial banks take the lead on a retail-facing <\/span>stablecoin,<\/span> as long as the rules are clear and the process is gradual.<\/span><\/p>\n

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Laying the Ground for Regulation<\/span><\/h2>\n

The stablecoin rollout also aligns with a broader legislative effort. The Democratic Party is advancing the Digital Asset Basic Act to define and regulate digital assets, including stablecoins. Lawmakers expect this law to set the foundation for how these tokens can be issued, who can manage them<\/span>, and <\/span>what<\/span> level of transparency <\/span>is<\/span> required.<\/span><\/p>\n

Source: Shutterstock<\/p>\n

At the same time, some banks <\/span>like<\/span> KB Kookmin have already filed trademarks for names <\/span>such <\/span>as<\/span> KBKRW and KRWST, indicating that development is well underway.<\/span> Legal reviews and compliance checks are still in progress<\/span>, but<\/span> if everything <\/span>stays<\/span> on schedule, pilots could begin in late 2025.<\/span><\/p>\n

Looking Ahead<\/span><\/h2>\n

South Korea is not the only country exploring this route. <\/span>Japan is rolling out bank-backed stablecoins under its <\/span>own<\/span> regulatory framework, <\/span>and<\/span> Europe is moving forward under MiCA.<\/span> What sets South Korea apart is the scale and speed of coordination between major banks. <\/span>By <\/span>moving<\/span> together, they <\/span>hope<\/span> to launch <\/span>something<\/span> trusted, regulated, and fully backed by Korean financial institutions.<\/span><\/p>\n

Whether this stablecoin ends up reshaping local payments or <\/span>simply<\/span> coexists with dollar tokens will depend on how <\/span>it\u2019s<\/span> received by <\/span>users<\/span>\u00a0and how effectively regulators and banks handle its launch.<\/span> What is clear is that South Korea is preparing to take a more active role in <\/span>how<\/span> digital money <\/span>works inside<\/span> its borders.<\/span><\/p>\n

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Join The 99Bitcoins News Discord Here For The Latest Market Updates<\/span><\/a><\/strong><\/p>\n

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\n South <\/span>Korea\u2019s<\/span> top banks plan to launch a won-backed stablecoin by late 2025 or early 2026, aiming to reduce reliance on dollar-based tokens like USDT and USDC.
\n <\/span><\/p>\n


\n Regulators are pushing the move to curb foreign digital assets and protect monetary sovereignty.
\n <\/span><\/p>\n


\n The Bank of Korea supports a gradual rollout starting with licensed <\/span>banks,<\/span> while continuing to develop its own wholesale CBDC model.
\n <\/span><\/p>\n


\n The project aligns with the upcoming Digital Asset Basic Act, which will define stablecoin rules, issuance rights, and transparency requirements.
\n <\/span><\/p>\n


\n Companies have already filed trademarks like KBKRW and KRWST. This suggests that the technical and legal groundwork for South <\/span>Korea\u2019s<\/span> first major bank-issued stablecoin is well underway.
\n <\/span><\/p>\n


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The post South Korea\u2019s Biggest Banks Join Forces on Won-Backed Stablecoin<\/a> appeared first on 99Bitcoins<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

A group of South Korea\u2019s top commercial banks is taking a major step toward launching a stablecoin tied to the Korean won. A consortium including KB Kookmin, Shinhan, Woori, Nonghyup, Industrial Bank of Korea, Suhyup, Citi Korea, and Standard Chartered Korea is leading the plan. Their goal is to bring a bank-issued digital won to […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-76242","post","type-post","status-publish","format-standard","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/76242"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=76242"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/76242\/revisions"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=76242"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=76242"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=76242"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}