Quick Breakdown:
- Executives from Tether and Circle are holding high-level meetings with South Korea’s major banks—Shinhan, Hana, KB Financial, and Woori.
- Discussions focus on distributing dollar-pegged stablecoins and issuing won-backed tokens.
- This aligns with President Lee Jae Myung’s pro-crypto agenda and upcoming stablecoin regulations, positioning South Korea as a potential stablecoin innovation hub.
Tether and Circle, the issuers of the world’s two largest stablecoins, are in advanced talks with South Korea’s top financial institutions as the nation prepares significant regulatory reforms for stablecoins. Executives from Shinhan Financial Group, Hana Financial Group, KB Financial, and Woori Bank have scheduled separate meetings this week with Tether and Circle’s leadership to explore collaboration opportunities.
South Korea’s crypto sector
These discussions centre around the distribution of dollar-pegged stablecoins—USDT and USDC—within South Korea, alongside potential issuance of won-backed stablecoins tailored for the domestic market. The meetings signal a shift in South Korea’s crypto sector, traditionally focused on domestic players, toward embracing global stablecoin issuers.
Notably, Shinhan CEO Jin Ok-dong and Hana CEO Ham Young-joo are set to meet Circle President Heath Tarbert, with Ham also scheduled to meet Tether representatives. Similarly, KB Financial’s chief digital officer Lee Chang-kwon and Woori Bank President Jeong Jin-wan plan talks with Circle executives. These dialogues come as South Korea’s pro-crypto administration under President Lee Jae Myung advances its agenda to foster a regulated stablecoin ecosystem.
Local exchanges like Upbit are already collaborating with payment platforms such as Naver Pay to launch stablecoins, reflecting growing domestic momentum. With South Korea ranking among the highest in global crypto adoption, authorities are keen to ensure the market remains regulated and competitive amid concerns over the dominance of foreign stablecoins.
The upcoming legal framework, anticipated by October, will define the issuance, management, and control of stablecoins, providing clarity for both issuers and financial institutions. This move positions South Korea as a potential hub for regulated stablecoin innovation in Asia, leveraging partnerships between global stablecoin leaders and established banks.
Notably, Tether recently named Bo Hines, previously the executive director of the White House Crypto Council, as its new strategic advisor for digital assets and U.S. expansion. This appointment is a key move in Tether’s efforts to enhance its presence in the U.S. market, the world’s largest economy.
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