South Korea is stepping up efforts to issue stablecoins pegged to the won. Local commercial banks formed a consortium to work on stable assets, while the country’s central bank insists that stablecoins must be issued exclusively through regulated banks.
The financial sector in South Korea began systematic preparation for issuing stablecoins backed by the national currency. Eight of the country’s largest banks created a consortium aimed at developing a joint platform for issuing won-pegged stablecoins, according to local media.
The national consortium includes:
- KB Kookmin Bank, South Korea’s largest commercial bank and part of KB Financial Group, managing $409 billion in assets;
- Shinhan Bank, the country’s second largest bank under Shinhan Financial Group, managing $507.83 billion in assets;
- Woori Bank, one of South Korea’s largest universal banks, managing $372.887 billion in assets;
- NongHyup Bank (NH Bank), a commercial bank focused on the agricultural sector, part of NH NongHyup Financial Group;
- Industrial Bank of Korea (IBK), a state-owned bank supporting small and medium-sized enterprises, managing $378 billion in assets;
- Suhyup Bank, a specialized bank serving the fishing industry, part of the National Federation of Fisheries Cooperatives, managing $55.5 billion in assets;
- iM Bank, formerly known as DGB Daegu Bank, managing $59 billion in assets;
- K Bank, South Korea’s first internet-only bank, managing $12.5 billion in assets.
The initiative is supported by the Open Blockchain & DID Association (OBDIA), a nonprofit organization established in 2018 by the Ministry of Science and ICT of South Korea to promote blockchain initiatives and develop DID ecosystems, as well as the Korea Financial Telecommunications & Clearings Institute (KFTC), which manages interbank payment systems in the country.
The consortium plans to launch a joint venture by late 2025 or early 2026 after legal regulations are finalized. Two technical models for issuing stable assets are under discussion:
- a trust model with client fund reserves;
- a deposit token backed 1:1 by bank deposits.
Ryoo Sang-dae, Deputy Governor of the Bank of Korea (BOK), stated that the issuance of stablecoins should initially be limited to banks with strong regulatory oversight. According to him, this approach will prevent market disruptions and ensure consumer protection. Previously, Rhee Chang-yong, Governor of BOK, highlighted risks to monetary policy and payment system stability if stablecoins pegged to the Korean won became widespread.
In response to growing stablecoin popularity, Kookmin Bank filed 17 trademark applications covering various electronic payment and financial service categories. Bank representatives noted that this move prepares the financial giant for a potential stablecoin launch. KakaoBank, a South Korean internet bank, also registered 18 trademarks for similar purposes earlier.
Interest in stablecoins is rapidly increasing in South Korea. According to the Bank of Korea, trading volumes of USDT, USDC, and USDS on exchanges like Upbit, Bithumb, Coinone, Korbit, and Gopax rose from 17.59 trillion won ($13 billion) in Q3 2024 to 60.2 trillion won ($44 billion) in Q4 2024. Trading volumes in Q1 2025 were 57.9 trillion won ($43 billion).
In 2024, South Korean authorities tightened regulatory oversight of stablecoins.
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