South Korea’s Top 8 Banks Unite for Won-Backed Stablecoin Push

Eight major South Korean banks are collaborating on a won-backed stablecoin initiative, aiming to reduce reliance on dollar-dominated tokens in domestic transactions. The project, supported by blockchain associations and the central bank, marks a strategic shift in the country's digital payment infrastructure.

The move aligns with President Lee Jae-myung's push for broader crypto regulation. Two stablecoin models are under development: trust-based and deposit-linked. This effort seeks to bolster South Korea's financial independence while positioning it competitively in the global stablecoin market.

Proposed legislation, including the Digital Asset Basic Act, WOULD impose licensing requirements and capital thresholds on stablecoin issuers. While the government embraces innovation, the Bank of Korea maintains a cautious stance toward digital assets.