South Korea’s largest banks have formed a consortium to issue a Won-backed stablecoin. The banks involved—KB Kookmin, Shinhan, Woori, NongHyup, Industrial Bank of Korea, Suhyup, Citibank Korea, and Standard Chartered Korea—plan to launch the stablecoin as early as late 2025 or early 2026. This initiative aims to provide an alternative to existing dollar-denominated stablecoins like USDT and USDC.
Currently, South Korean lawmakers and politicians are advancing legislation to regulate the digital asset market, aiming to reduce reliance on foreign digital currencies and enhance financial sovereignty amid a volatile geopolitical landscape.
The consortium is exploring two models: a trust-based framework where user funds are held in custody, and a deposit-linked structure where stablecoins are issued directly against bank deposits. They are also collaborating with the Open Blockchain and Decentralized Identifier Association (OBDIA), a local blockchain advocacy organization, and the Korea Financial Telecommunications and Clearings Institute (KFTC), which manages the country’s interbank payment and settlement system.