South Korea’s Top Banks Collaborate on Won-Backed Stablecoin Initiative

South Korea’s leading commercial banks, including KB Kookmin, Shinhan, Woori, Nonghyup, Industrial Bank of Korea, Suhyup, Citi Korea, and Standard Chartered Korea, are joining forces to develop a Korean won-pegged stablecoin. The consortium aims to launch the digital currency by late 2025 or early 2026, offering an alternative to dollar-denominated stablecoins like USDT and USDC that dominate local crypto transactions.

The MOVE reflects growing concerns over monetary sovereignty, as foreign stablecoins accounted for nearly 57 trillion won in trade volume during Q1 2025. Two issuance models are under consideration: a Trust Model and a Deposit Token Model. This initiative marks a strategic effort to reclaim control over domestic digital asset flows while reducing reliance on privately issued foreign stablecoins.