Eight major South Korean banks are collaborating to create a stablecoin pegged to the won, marking a significant step toward digital asset adoption in the country.
Participating Institutions
The project involves institutions such as KB Kookmin, Shinhan, Woori, Nonghyup, Corporate, Suhyup, Citi Korea, and SC First Bank. The collaboration aims to combat the increased dollar dominance due to the rise of dollar-pegged stablecoins.
Expected Launch of the Stablecoin
The project is reportedly expected to materialize in late 2025 or early 2026. This will be the first major move from traditional banks into the digital asset space. The initiative will also receive support from organizations like Open Blockchain and the Decentralized Identity Association.
Potential Issues and Opinions
Following the development, Bank of Korea Governor Rhee Chang-yong expressed concerns that creating the stablecoin could make it easier for holders to exchange the currency for dollars. Despite this, he stated he is not against issuing a won-pegged stablecoin. The Bank of Korea deputy governor later mentioned that stablecoin rollout should be gradual, emphasizing that banks should be the first issuers.
The launch of a won-pegged stablecoin will be a significant step for South Korea in the digital finance sector, allowing the country to compete more effectively in the global market.
