Nation’s Big Banks Unite for Won-Pegged Stablecoin Launch
Eight major South Korean financial institutions will collaborate to launch a stablecoin pegged to the won currency, a significant move aimed at enhancing digital asset adoption and countering dollar dominance.
According to an Econovill report, the initiative involves leading banks including KB Kookmin, Shinhan, Woori, Nonghyup, Corporate Bank, Suhyup Bank, Citi Korea, and SC First Bank. This coalition seeks to mitigate the increased influence of dollar-pegged stablecoins in the global market.
Current stablecoin data from the RWA.xyz tracker indicates a market capitalization exceeding $239 billion, with 99% pegged to the US dollar. This project intends for South Korea to gain a competitive edge in the evolving global digital finance landscape.
The collaborative effort is expected to launch between late 2025 and early 2026, representing the first significant entry of traditional banks into the digital asset space. Support has been expressed by organizations including Open Blockchain and the Decentralized Identity Association, alongside backing from the Korea Financial Telecommunications and Clearings Institute.
While the specific stablecoin model—likely a trust-based approach or 1:1 deposit token—remains pending regulatory approval, the initiative aligns with broader legislative efforts in South Korea. Recently, on June 10, South Korea’s ruling party proposed the Digital Asset Basic Act to facilitate stablecoin issuance and support crypto market growth.
Bank of Korea Concerned Over Currency Impact
Bank of Korea Governor Rhee Chang-yong voiced concerns that a national won-pegged stablecoin could facilitate an easier exchange with dollars, potentially undermining the currency and complicating monetary management. However, he did not oppose the concept itself.
In a subsequent clarification, Deputy Governor Ryoo Sangdai advocated for a gradual rollout, suggesting banks should pioneer stablecoin issuance to establish a safety net.
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