In a major step toward mainstream adoption of digital assets, South Korea has launched its first-ever Korean won-backed stablecoin, KRWIN, in a limited test phase. The stablecoin was developed by fanC, in partnership with financial software firm Initech, and is pegged 1:1 to the Korean won.
The pilot, unveiled on August 5, is the first time a private company in South Korea has issued a digital asset tied to the national currency. According to The Korea Herald, the test is focused on evaluating KRWIN’s technical performance, including its transferability and real-world use cases.
For now, the token’s circulation is restricted to internal entities affiliated with fanC and Initech. However, plans are already in motion to expand its reach across various industries such as payment services, global remittances, and tourism.
Lee Dong-ho, a spokesperson for fanC, described the launch as a key milestone in the evolution of South Korea’s digital asset ecosystem. “KRWIN will establish itself as a leading private model driving future demand for won-denominated digital assets,” he stated. The initiative is said to blend blockchain technology with robust financial security standards.
In preparation for a wider rollout, fanC filed for a trademark for KRWIN and related technologies with the Korean Intellectual Property Office just a month prior. While no official public release date has been disclosed, the move signals FanC’s readiness to bring KRWIN to market soon.
The launch aligns with rising interest in stablecoins within South Korea’s financial sector, fueled by President Lee Jae-myung’s pledge to support cryptocurrency assets backed by the Korean won. His stance has attracted growing attention from investors and fintech firms exploring opportunities in the stablecoin space.
Other major players are also entering the fray. Crypto exchange Bithumb is reportedly in discussions with Toss operator Viva Republica to develop a similar product. Meanwhile, Upbit, South Korea’s largest exchange, has teamed up with fintech payment provider Naverpay to explore issuing their own won-backed stablecoin.
Despite the excitement, regulatory concerns remain. In May, the Bank of Korea called for the authority to oversee the approval of Korean won-pegged stablecoins, citing risks to monetary policy if these tokens are used as de facto legal tender.
If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
