The post Banks in South Korea Unite for a Won-Based Stablecoin Launch appeared on BitcoinEthereumNews.com.

According to a recent report by the local news outlet Economic Review, eight major banks in South Korea are set to launch a joint venture to issue a stablecoin pegged to the Korean Won (KRW).  The joint venture aims to reduce reliance on US dollar-backed stablecoins, which dominate crypto trading, and establish leadership in the digital asset market. South Korea’s Stablecoin Push The report highlighted that this is the first time banks have entered the digital asset business as a consortium. The participating domestic banks include Kookmin Bank, Shinhan Bank, Woori Bank, Nonghyup Bank, Korea Development Bank, Suhyup Bank, Citibank Korea Branch, and Standard Chartered Bank Korea Branch. The project is being developed with the Open Blockchain, Decentralized Identity (DID) Alliance, and the Korea Financial Telecommunications and Clearings Institute. The parties involved have yet to decide on the method for issuing the Won-based stablecoin. However, the media outlet noted that the banks are exploring two issuance models: a trust-based model and a deposit-token model. Both of these are currently under technical and legal review. Pending regulatory approval, the joint venture could be established by the end of this year or early next year.  “There is a shared sense of crisis that if things continue this way, foreign dollar coins could dominate the domestic market. It is time to secure independence and competitiveness of the domestic financial system at the same time through a Won-based digital currency,” a banking industry official stated. This initiative aligns with newly elected President Lee Jae Myung’s push to bolster the local currency’s role in the digital economy. BeInCrypto reported that the President has made crypto-friendly policies a cornerstone of his administration.  During his campaign, he pledged to develop and promote Won-backed stablecoins. Moreover, in early June, Democratic Party lawmaker Min Byeong-deok proposed the Digital Asset…

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Filed under: News - @ June 25, 2025 6:28 am