8 Top Banks of South Korea Unite to Launch Won-Based Stablecoin

South Korea's financial sector is making a decisive MOVE into digital assets. Eight major commercial banks—KB Kookmin, Shinhan, Woori, Nonghyup, Industrial Bank of Korea, Suhyup, Citibank Korea, and SC First Bank—are forming a consortium to issue a won-pegged stablecoin. The initiative, developed with the Open Blockchain and DID Association and the Financial Supervisory Service, marks the first collective foray by domestic banks into the digital asset market.

The consortium aims to finalize infrastructure and operational frameworks by late 2025 or early 2026, pending regulatory adjustments. Two issuance models are under consideration: a trust-based system with segregated customer funds and a deposit token model mirroring bank liabilities 1:1. This effort counters the dominance of foreign stablecoins, particularly dollar-backed alternatives, as private-sector innovations proliferate globally.