South Korea’s Banking Giants Collab to Launch KRW-Backed Stablecoin by 2025
Seoul’s financial heavyweights are making a power play—forging an alliance to mint a won-pegged digital asset that could reshape regional finance.
Why it matters: This isn’t just another stablecoin—it’s a strategic move by traditional banks to reclaim territory from crypto-native issuers. The timing? Impeccable, as regulators finally wake up to stablecoins’ systemic importance.
The backstory: After years of watching private stablecoins dominate, Korea’s top lenders decided to fight fire with fire. Their weapon? Institutional-grade blockchain infrastructure and—let’s be honest—regulatory capture dressed as innovation.
Between the lines: Watch for friction with the FSA’s sandbox rules, plus the inevitable ‘partnership’ announcements from compliant crypto exchanges desperate for banking access.
Bottom line: When banks start copying crypto projects, you know the revolution’s over—or just getting interesting. (And yes, we see the irony of TradFi institutions finally ‘getting it’ after a decade of dismissing digital assets.)
TLDR
- South Korea’s Top Banks Plan Won-Based Stablecoin
- Stablecoin Push Gains Traction in South Korea
- Private Sector Stablecoin Project Targets 2026 Launch
- KB Kookmin and KakaoPay Lead Stablecoin Branding Race
- Won-Pegged Stablecoin Eyes Web3 and Global Finance
Eight of South Korea’s major commercial banks have started preparations to issue a won-based stablecoin. The project targets global stablecoin dominance while reinforcing national digital currency capabilities. It will proceed under a consortium model, separate from the central bank’s CBDC development.
Banks to Form Consortium for Stablecoin Launch
KB Kookmin, Shinhan, Woori, Nonghyup, IBK, Suhyup, Citibank Korea, and SC First Bank are working on a joint venture. They plan to launch a won-linked stablecoin, aligning with South Korea’s digital asset roadmap. Development will happen in cooperation with the Open Blockchain and DID Association and the Financial Supervisory Service.
Eight major banks in South Korea are working with the Open Blockchain and DID Association and the Financial Settlement Institute to establish a Korean won stablecoin joint venture. This project is the first time that the banking industry has entered the digital asset field in the…
— Wu Blockchain (@WuBlockchain) June 25, 2025
The consortium aims to issue stablecoins using two models: the trust-based approach or the deposit-token format. In the trust model, customer funds are held separately, while the deposit-token type will be backed 1:1 with bank deposits. Both models are under legal and technical review to ensure compliance and functionality.
A key objective is to create a stablecoin infrastructure independent from dollar-pegged options. The collaboration signals an active private sector response to international stablecoin expansion, particularly from the U.S. and Japan. Banks aim to finalize their structure and legal framework by late 2025 or early 2026.
Stablecoin Framework Aligns with New Digital Asset Bill
The plan supports the Basic Digital Asset Act, which is currently under review in South Korea’s National Assembly. The bill includes proposals for a stablecoin licensing system to regulate issuance and protect users. It also outlines the responsibilities of stablecoin providers regarding consumer safety and fund management.
The Financial Services Commission(FSC) will release a second-stage roadmap to define institutional mechanisms for VIRTUAL assets. Stablecoin regulation forms a central part of this strategy, aiming to integrate private digital currencies within the national ecosystem. The bill complements earlier legislative steps that clarified taxation and transparency in crypto transactions.
South Korea’s central bank will continue separate CBDC developments, but future synergy with the private stablecoin infrastructure remains possible. The proposed stablecoin will not overlap with CBDC but may share technical elements. Stakeholders are watching whether cooperation will emerge between the public and private systems.
KB Kookmin and KakaoPay Move Ahead with Trademarks
KB Kookmin filed 17 stablecoin-related trademarks, signaling its intent to lead the stablecoin rollout. The applications covered symbols such as KBKRW and KRWKB and included categories like digital currency software and blockchain transaction tools. KakaoPay also submitted trademark applications for stablecoin symbols earlier this month.
Both firms are working to secure early branding for their potential stablecoin products. Their moves support broader industry efforts to build a domestic payment system independent from foreign stablecoins. These trademarks reflect growing momentum toward a won-based stablecoin ecosystem.
The Korea Financial Telecommunications and Clearings Institute may also contribute to the new infrastructure. The agency that manages interbank payments is being considered for backend settlement support. Discussions regarding system design and operation standards are ongoing.
Stablecoin Use Cases Expand to Finance and Web3
The stablecoin project may open up new applications in payments, cross-border transfers, and blockchain financial services. Potential areas include domestic mobile payments, web3 platforms, and P2P financial ecosystems. Stakeholders expect stablecoin use to improve efficiency and reduce dependency on foreign currency solutions.
South Korean President Lee Jae Myung has expressed support for stablecoin innovation. His administration backs private-sector initiatives to accelerate stablecoin adoption across industries. A related bill from lawmaker Min Byeong-deok aims to fast-track approvals for such projects.
The stablecoin project could help lower trading costs, reduce foreign exchange risks, and attract global capital. Key industries like gaming, content creation, and commerce are likely to adopt stablecoins in daily operations. Full implementation will depend on legal clarity, consumer protections, and trust in system reliability.
