South Korean Banks Make Crypto Leap: Stablecoins & Digital Assets Now in Their Crosshairs
Traditional finance meets the blockchain revolution—South Korea's banking giants are finally jumping into crypto.
After years of regulatory limbo, major players like Shinhan and KB Kookmin are quietly building infrastructure for stablecoin issuance and trading. No more sitting on the sidelines while fintech startups eat their lunch.
The FSA's 'wait-and-see' approach is crumbling under institutional demand. Banks aren't just dipping toes anymore—they're preparing full-scale deployments. Expect wallet integrations first, then custody solutions, then (of course) proprietary stablecoins wrapped in compliance paperwork.
Wall Street analysts predict this move will legitimize crypto for Korea's risk-averse retail investors. Local exchanges already report surging institutional inquiries. Funny how banks suddenly care about 'financial inclusion' when there's a 24/7 market to skim fees from.
Game on. The question isn't if traditional finance will adopt crypto—it's whether crypto will adopt traditional finance's bad habits.
Lawmakers respond swiftly to political shift
That is a dramatic change from just a few years ago. Korean major banks prepared for crypto tasks in 2018 and 2019. But that idea got put on hold after the Moon Jae-in administration banned Initial Coin Offerings (ICOs) and introduced tight regulations across crypto-related services.
But now, led by President Lee Jae-myung, things have changed. Lee has been a vocal advocate of digital finance innovation and blockchain deployment, and has introduced regulated crypto infrastructure after he assumed office in the summer of 2025. Under his administration’s friendly policies, the country’s moribund crypto market began to pick up.
In response, South Korean lawmakers are reviewing several pro-industry reforms. These proposed laws are currently sitting with various committees in the National Assembly and could be passed within the coming months. The legislation is expected to provide a legal framework for stablecoin issuance, crypto custody services, and possibly digital asset exchanges operated by traditional financial institutions.
Banks are treating the anticipated legal shift as a green light. According to Maeil Kyungjae, the country’s top business newspaper, institutions are moving swiftly to secure their place in the emerging market.
A banking insider told the publication that, although the reforms had not yet been implemented, they WOULD take time to effect. For this reason, the insider explained, the industry believed that preparing in advance would allow firms to enter the market quickly once lawmakers introduced new legislation.
Lenders target markets with stablecoin trademarks
Beyond team formations, banks are taking additional steps to protect their future interests in the crypto space. Shinhan Bank has assembled a 20-member crypto task force dedicated to researching and developing digital asset services.
KB Kookmin Bank is leading the way in intellectual property protection. It has submitted 32 trademark applications for stablecoins based on the Korean won and 49 more for stablecoins based on other currencies.
Regional and even smaller institutions are getting ready. A specialized digital asset task force has been established by K Bank, a digital-first bank well-known for its collaboration with Upbit, one of the biggest cryptocurrency exchanges in South Korea. Another regional organization, Busan Bank, has a blockchain research team that assesses distributed ledger technology applications in the financial industry.
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