South Korea’s top commercial banks are uniting to launch a won-pegged stablecoin, marking a significant move to reclaim control over the domestic digital asset space as foreign-issued dollar stablecoins grow increasingly dominant.
As reported on June 25 by Economic Review, eight major banks—KB Kookmin, Shinhan, Woori, Nonghyup, Industrial Bank of Korea, Suhyup, Citibank Korea, and SC First Bank—have joined forces under a new initiative led by the Open Blockchain and DID Association and the Financial Settlement Institute. The group plans to introduce a Korean won-backed stablecoin that aligns with the nation’s broader regulatory push to modernize its financial infrastructure.
This move comes shortly after the Financial Services Commission unveiled a new roadmap for the regulation of stablecoins and crypto exchange-traded funds (ETFs), signalling South Korea’s intention to synchronize its digital asset policy with global standards.
“There is a shared sense of crisis that if things continue this way, foreign dollar coins could dominate the domestic market,”
a bank official reportedly said.
“It is time to secure both the independence and competitiveness of the domestic financial system through a won-based digital currency.”
To that end, the banking consortium is evaluating two potential issuance models for the stablecoin: a trust-based framework and a deposit-linked system. Both are designed to guarantee full 1:1 backing with the Korean won, ensuring stability and user confidence. Although technical and regulatory specifics are still under review, the launch is tentatively scheduled for late 2025 or early 2026, pending regulatory approval.
In parallel, Democratic lawmakers in South Korea are pushing for an accelerated rollout of government-issued won-pegged stablecoins, viewing them as strategic tools to elevate the status of the Korean won in both domestic and global markets.
The combined momentum from both private and public sectors underscores a pivotal shift in South Korea’s digital finance landscape, with the won-backed stablecoin emerging as a potential counterweight to the global dominance of dollar-based crypto assets.
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