365Crypto
Eight major South Korean banks plan to launch a stablecoin backed by the won by 2026. This effort aims to fight the growing influence of the US dollar in crypto markets.
Banks involved include KB Kookmin, Shinhan, Woori, Nonghyup, Corporate, Suhyup, Citi Korea, and SC First Bank.
Stablecoins pegged to the US dollar dominate the market, making up 99% of stablecoins with over $239 billion in market value. South Korea wants to compete globally with its own digital currency.
The project might launch by late 2025 or early 2026. It’s the first big step by traditional banks into digital assets.
The stablecoin will likely use a trust-based or 1:1 deposit model, pending regulatory approval.
South Korea’s ruling party supports clearer laws for digital assets, proposing the Digital Asset Basic Act.
The Bank of Korea’s governor warned the stablecoin could make currency management harder due to easier dollar swaps. But the deputy governor said banks should lead the rollout carefully to ensure safety.
Footnotes:
Stablecoin: A cryptocurrency designed to keep a stable value by being linked to a real-world asset like a currency.
1:1 deposit model: Every stablecoin issued is backed by an equal amount of currency held in reserve.
