South Korea's Largest Banks to Create Won-Pegged Stablecoin
Date: 2025-06-27 Author: Gabriel Deangelo Categories: CRYPTO PAYMENTS
South Korea's largest commercial banks have decided to jointly develop and implement a stablecoin backed by the national currency, the won. This move is aimed at reducing users' dependence on US dollar-oriented stablecoins and expanding the role of Korean financial institutions in the digital asset space.
The consortium includes banks such as KB Kookmin, Shinhan, Woori, Nonghyup, Industrial Bank of Korea, Suhyup, Citibank Korea, and SC First Bank. The initiative is supported not only by the banking sector, but also by government regulators: the Financial Supervisory Service and the Financial Services Commission (FSC) will facilitate the project, and the Open Blockchain and DID Association will act as a technology partner.
This is the first example of the country's largest banks joining forces to enter the digital asset market through a joint structure. This approach highlights Korea's desire to follow the example of the United States and Japan, where national stablecoins are becoming a tool for developing international payments and cross-border transfers.
It is important to note that this initiative is different from the central bank digital currency (CBDC) program that the Bank of Korea continues to develop. Although the new coin will be based on the national currency, the details of its integration with the central bank are still being discussed. The banks plan to agree on technical solutions and operational mechanisms that will make the project as secure and user-friendly as possible.
The South Korean authorities see the launch of their own stablecoin as a way to counter the dominance of dollar-pegged stablecoins and ensure that national banks are competitive in the international arena. To do this, the banks intend to create an infrastructure that can withstand high demand and maintain transparency in all operations.
Given the growing interest in digital assets in the region and around the world, the emergence of a won-based stablecoin could be a significant step towards strengthening the country's financial stability and technological independence. The project will allow commercial banks to offer customers modern payment and transfer tools while maintaining control over the movement of funds.
So, South Korea confirms its ambitions to become a significant player in the fintech sector, relying on its own currency and a consortium of the largest financial institutions.
